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UK defence giants call on London firm for merger help

14th September 2012

BAE Systems have instructed a leading Magic Circle firm to advise them on the potential tie-up between them and European giants EADS, a deal which would have major consequences for the UK defence industry.

The manufacturers, who are the largest employers of their kind throughout Britain, have asked those with top corporate solicitor jobs in London to help guide them through the complex process, which it is estimated would be worth around £30.5 billion.

Many analysts are claiming that the so-called ‘merger’ would in effect be a takeover, with the Dutch group essentially gaining control of BAE’s commitments. As far as shareholders are concerned, the division of stock amongst those with a stake in the business would be 60-40 in EADS’s favour, which reflects the dominant role that the overseas investors will take if and when the transaction is completed.

A statement issued from BAE confirmed, however, that each company would continue to be listed separately on stock exchanges, despite largely operating as one group from now on.