Germany threatens to scuttle defense merger

German Deputy Economy Minister Hans-Joachim Otto told the
committee where Enders testified in a closed session that it’s “not just a
question of how but whether” the merger should occur, according to Bloomberg
News.    

German officials questioned the proposed 60-40 ratio to split control of the company, as they say EADS’s 60 percent share should be higher to reflect the proper size differential between the two.

{mosads}While there are U.S. national security issues for the companies in the proposed BAE-EADS merger, their primary goal is to get the British,
French and German governments to sign off on the deal. Germany has a stake in
EADS through Daimler AG, and France has a direct stake in the company, according
to the Guardian.

If the BAE-EADS merger goes through, the combined entity of
about $45 billion would be the largest defense and aerospace company in the
world.