All three parties refuse to comment on report that French government is engineering EADS takeover of Thales
EADS and Thales have refused to comment on reports that the French government is trying to steer an audacious merger between Europe's largest and third-largest aerospace and defence companies.
The government - which owns 31% of Thales and 15% of EADS - has also dismissed as "rumours" the story, in French business daily Les Echos. A combined EADS and Thales would rival Boeing as the industry's number one player, although any merger move would face huge regulatory and political hurdles.
Three weeks ago, French companies Snecma and Sagem announced merger talks, sparking speculation that a fresh wave of consolidation of Europe's aerospace industry is imminent.
In an interview with Flight International last week, Thales chief executive Denis Ranque was extremely lukewarm about the benefits of a union with EADS, saying: "I don't believe Thales has any need to be merged into a wider company, so there is no benefit in size itself."
Thales had also been mooted as a suitor for Snecma.
Source: Flight International
