Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Canadian Cannabis Stocks CRASH as Canopy Growth Hits a Dead End - 14th Dec 19
Retail Sector Isn’t Dead, and These 6% Dividend Paying Stocks Prove It - 14th Dec 19
Top 5 Ways to Add Value to Your Home - 14th Dec 19
Beware Gold Stocks Downside - 13th Dec 19
Fed Says No Interest Rate Hikes In 2020. What About Gold? - 13th Dec 19
The ABC’s of Fiat Money - 13th Dec 19
Why Jo Swinson and the Lib Dems LOST Seats General Election 2019 - Sheffiled Hallam Result - 13th Dec 19
UK General Election 2019 BBC Exit Poll Forecast Accuracy Analysis - 12th Dec 19
Technical Analysis Update: Tadawul All Share Index (TASI) - Saudi Arabia ETF (KSA) - 12th Dec 19
Silver Miners Pinpoint the Precious Metals’ Outlook - 12th Dec 19
How Google Has Become the Worlds Biggest Travel Company - 12th Dec 19
UK Election Seats Forecasts - Tories 326, Labour 241, SNP 40, Lib Dems 17 - 12th Dec 19
UK General Election 2019 Final Seats Per Party Forecast - 12th Dec 19
What UK CPI, RPI INFLATION Forecasts for General Election Result 2019 - 11th Dec 19
Gold ETF Holdings Surge… But Do They Actually Hold Gold? - 11th Dec 19
Gold, Silver Reversals, Lower Prices and Our Precious Profits - 11th Dec 19
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19

Market Oracle FREE Newsletter

UK General Election Forecast 2019

EADS and BAE Systems Merger to Create Powerful European Defense Corporation

Companies / Sector Analysis Sep 22, 2012 - 03:11 AM GMT

By: Pravda

Companies

Europe's largest defense aerospace corporations - EADS and BAE Systems - prepare for a merger. Reportedly, the talks between the companies have ended successfully. The merger is to create a full-fledged defense concern, the turnover of which will surpass that of Boeing.


British company BAE Systems plans to obtain 40 percent in the united global company, whilst EADS will get hold of 60 percent. The board of directors and the top management of the holding will include representatives of Airbus and BAE Systems. French holding SOGEADE, which is controlled by the French government, owns 22,36 percent at EADS. The same share belongs to Germany's Daimler. Another 5,44 percent of the shares of the concern are owned by Spanish industrial holding company SEPI, while the remaining 49,3 percent of shares are freely traded on the market.

The capitalization of Britain's BAE Systems has reached 13.4 billion euros. The French-German EADS is evaluated at 23.2 billion euros. The competitor of the united concern - the American Boeing - has the market capitalization of $41.7 billion. The turnover of the new giant will be larger: BAE Systems (23,9 billion euros) and EADS (49,1 billion euros) combined will be larger than the turnover of the American company - $54.3 billion euros. The companies will remain independent in the listings of international exchange houses.

BAE Systems is mainly focused on the military segment. The company works in the field of land wheeled vehicles, manufacturing Challenger II tanks, M2/M3 Bradley armored vehicles, M113 armored personnel carriers and artillery. The company is actively engaged in the creation of new weapons - the electromagnetic gun, for example. The most famous aerospace product of EADS - Airbus aircraft - is the result of successful partnership.

EADS and BAE Systems jointly manufacture European combat aircraft Eurofighter Typhoon, which is used by the Air Force of Austria, Britain, Germany, Spain and Italy, as well as Saudi Arabia, where the British group enjoys strong positions. The companies, together with Finmeccanica, run France's MBDA, which manufactures a wide range of missile weapons. EADS and BAE Systems own 37.5 percent of shares in the capital of the joint venture. Italy's Finmeccanica controls another 25 percent.

The negotiations about the establishment of the European giant are scheduled to end on October 10. The governments of several countries will have to say their word to implement the transaction. It will be signed once it is approved by the government of the U.S., France, Germany and the UK.

Earlier, Director General of EADS Tom Enders stated that the joint venture would employ about 220,000 people worldwide. As a result of the merger, the supercorporation will obtain developed industrial and scientific infrastructure in major cities of the world's leading countries - France, Spain, Germany, the UK and the USA.

Thus, the EU consolidates the production of defense and aerospace products and integrates sales markets, increasing the total potential in them. The new concern will receive large government customers worldwide. BAE wants to have the preferential right to sell its developments on the U.S. market. The company should not control this segment after the merger.

Officials with the German government note that the establishment of the alliance will create certain problems associated with industrial safety of the countries participating in the agreement. The news about the merger of the companies sent BAE's shares on the London Stock Exchange up by 10.6 percent immediately, while the securities of EADS fell 3 percent.

Anatoly Miranovsky

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules