EADS merger ‘could give BAE boost’ (From Lancashire Telegraph)

EADS merger ‘could give BAE boost’

11:49am Friday 14th September 2012 in News By Jonathon Dillon, Assistant news editor

AEROSPACE and business chiefs believe BAE Systems could benefit by joining forces with another aerospace giant.

BAE has confirmed talks over a potential merger with Airbus aircraft manufacturer EADS to create the world's biggest aerospace and defence company.

The statement triggered a 11 per cent surge in the share price but the stock pulled back five per cent yesterday.

Dennis Mendoros, managing director of Pendle aerospace firm Euravia, said the mega-merger could open up new markets and technologies for BAE.

He said: "I'm quite confident this will add so much value to BAE. It will allow them to be involved in other EADS projects as well as space technology. BAE only has one main product, the Eurofighter.

“This will give them the opportunity to diversify in new technology and access to new markets."

A BAE spokeswoman said it was too early to confirm whether there would be any job losses.

But Mr Mendoros added: "I believe it will safeguard jobs and create more jobs, especailly for the new Enterprise Zone."

Mike Damms, chief executive of the East Lancashire Chamber of Commerce, said a combined firm could be stronger.

He said: "BAE are a big employer and part of the fabric of Lancashire.

“If they come together and think they have a better chance to get a bigger market share, it would be good for jobs.

“f they don't they may lose out. We have got to leave it to the board to see the grand merits."