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Article updated: 10/10/2012 1:27 PM

Political objections derail European aerospace deal

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British defense contractor BAE Systems PLC and its European counterpart EADS NV on Wednesday Oct 10, 2012 abandoned a proposed merger that would have created a global defense and aerospace giant.

Associated Press

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A deal to create a European defense and aerospace giant to rival Boeing Co. collapsed Wednesday when BAE Systems and EADS NV called off merger talks in the face of government objections. The companies said they had “decided to terminate their discussions” over the proposed $45 billion tie-up because of conflicting interests between the British, French and German governments.