EADS and BAE Systems discuss merger to create worlds largest defense and security groupMadison Ruppert, Contributor The companies stated that certain defense activities could be ringfenced (financially separated) in accordance with agreements with governments, the United States of America in particular, due to their strategic and national security importance and due to the importance of that market [the USA] to the enlarged group. Indeed, BAE works quite closely with the U.S. government, evidenced by their work on electromagnetic weaponry with the Office of Naval Research and former BAE Systems employees working with the Defense Advanced Research Projects Agency (DARPA). In response to BAE systems announcement that came after sudden share price movement in the London Stock Exchange, EADS confirmed it is in talks with BAE but cautioned that the matter is subject to the approval of the Board of EADS and there can be no certainty that these discussions will lead to a transaction, Defense Update reports. If shareholders approve, BAE Systems and EADS might give the British, French and German governments special shares in the companies in order to replace the existing UK government share in BAE Systems and the stakeholder concert party arrangements in EADS. The discussion of a merger between BAE and EADS isnt all that surprising since they already work together closely evidenced by their shared ownership of Eurofighter GmbH, the company behind the Eurofighter Typhoon, and their joint ownership of the MBDA missile development and manufacturing company. That being said, this potential merger is not in any way minor. If it happens, they would create the largest aerospace, defense and security group on Earth. They would have at their disposal major manufacturing centers in America, Britain, France, Germany and Spain. By combining they would increase their business volume to twice that of even the largest of todays defense contractors, namely, Lockheed Martin. BAE Systems and EADS operate highly secure and sensitive defense businesses in the USA, the UK, France, Germany, Spain, Saudi Arabia and Australia, amongst other countries. Discussions have therefore been initiated with a range of governments about the implications of the potential transaction, Defense Update reports. BAE Systems and EADS believe that the potential combination of their two businesses offers the prospect of significant benefits for customers and shareholders of both companies, the announcement from BAE said. These benefits include cost savings, such as from procurement and sourcing efficiencies available to the enlarged group, and substantial new business opportunities. Of course the benefit they dont mention is a near complete dominance of the entire defense industry and the ability to choke out the competition. Unfortunately, it seems that these corporations realize that there is a long future in the business of war profiteering. Unless the people of the world step up and start demanding an end to the perpetual wars well have to continue to witness the constant expansion of these megalithic corporations. Did I forget anything or miss any errors? Would you like to make me aware of a story or subject to cover? Or perhaps you want to bring your writing to a wider audience? Feel free to contact me at admin@EndtheLie.com with your concerns, tips, questions, original writings, insults or just about anything that may strike your fancy. Please support our work and help us start to pay contributors by doing your shopping through our Amazon link or check out some must-have products at our store. This article first appeared at End the Lie. linkwithin_text=Related Articles: 