BAE in talks with EADS

14 Sep 2012

BAE Systems, the company that runs Glasgow's shipyards is in talks over a potential merger.

BAE Systems, which owns the Govan and Scotstoun yards, is discussing plans to merge with Airbus aircraft manufacturer European Aeronautic, Defence and Space (EADS).

The defence company, which employs around 3000 shipyard workers in the West and Southside of the city, would form the world's biggest aerospace and defence company if the tie-in goes ahead.

The merged group would employ around 220,000 staff, including 48,000 in the UK, with combined sales of some £60billion.

As reported in the Evening Times earlier this month, the last Type 45 warship to be built on the Clyde - HMS Duncan - slipped out of Scotstoun shipyard on Friday, August 31.

The battleship, which is one of the world's most advanced, was the last in a £6bn fleet to be built in the city.

Shares in the London-based BAE soared 11% on the news of the talks. BAE said the proposed deal would be a merger, but would see BAE shareholders own 40% of the combined group and EADS shareholders own 60%.

BAE produces Astute nuclear-powered submarines and is the largest supplier of land vehicles to the US army.

Source: Evening Times - BAE confirms merger talks