BAE Systems and EADS confirm merger discussions

BAE Systems and EADS have confirmed that they are in discussions regarding a possible merger of their businesses.

According to a statement from the companies, the potential merger would be implemented through the creation of a dual-listed company structure, under which both companies would operate as one group by means of equalisation and other agreements.

The companies would be separately listed on their existing exchanges.

The discussions between the parties envisage that BAE shareholders would own 40 per cent and EADS shareholders 60 per cent of the enlarged group.