EADS boss says BAE merger is the perfect fit

EADS’ chief executive Tom Enders said yesterday that the firm’s planned mega-merger with BAE Systems represented a “perfect fit”, as he offered reassurance to workers after last week’s drop in the company’s share price.

Enders said in a letter to employees that discussions with stakeholders regarding the deal were “moving forward”, and he would be able to update the market with further details “soon”.

However, a source close to the deal said that it was unlikely the 10 October deadline would be brought forward.

“It [the deal] doesn’t add complexity, it provides opportunity. Despite some initial critical reactions, word will soon go around that this deal makes good business sense,” Enders added.

Enders said that the focus of EADS at the moment is discussing governance and national security issues, but said that talks over the $45bn tie-up were progressing well.

“We are currently in constructive and advanced discussions with all relevant governments,” he said, adding that both parties are “trying to accommodate their concerns and national security interests as best as possible”.

“Good governance is a key prerequisite for both companies, it’s the ‘go’ or ‘no go’ for this project,” Enders continued.

He concluded the letter with: “I know that with combining businesses between EADS and BAE Systems, we can seize a unique opportunity – an opportunity which will allow us to stay in the top league of our industry and to actively shape it in the decades to come.”

After talks on a tie-up between EADS and BAE were leaked last week, government officials have this week been setting out their views on the deal.

It is understood that German Chancellor Angela Merkel will discuss the deal with Fraench President Francois Hollande when they meet on Saturday.

All governments need to approve the deal for it to be green lit. Britain holds a “golden share” in BAE that allow it to veto any party from owning over 15 per cent of the defence firm.

If it goes ahead, the new companywould overtake Boeing as the world's biggest aerospace and defence firm.