Announced Merger of BAe and GEC's Defence Business Creates Obstacle to European Integration
Munich - DaimlerChrysler and DaimerChrysler Aerospace AG (Dasa/München) note the announcement by British Aerospace (BAe) and General Electric Company (GEC) regarding the proposed merger of GEC's defence business with BAe.
It is well known that DaimlerChrysler/Dasa have supported the restructuring of the European aerospace industry and favoured a cross border merger of the relevant companies for a long time. It was in this context that DaimlerChrysler/Dasa had intensive discussions with British Aerospace concerning a bilateral merger of equals between Dasa and BAe as a first step.
If the BAe/GEC merger proceeds as announced, it will make balanced European horizontal mergers such as Dasa-BAe impossible and create an obstacle to European integration.
On the basis of its strong economic performance and strategic position DaimlerChrysler/Dasa will now evaluate its other European and transatlantic options.
-ends- Announced Merger of BAe and GEC's Defence Business Creates Obstacle to European Integration
