Feeds

EU ponders £30bn BAE-EADS mega aerospace-military borg

Brussels sayin' yes to gov's pieces o' eight could make or break deal

Beginner's guide to SSL certificates

Questions remain over the likely outcome of a proposed £30bn merger between BAE Systems and EADS which would create the world's second-biggest aerospace and defence company.

Securing government approval for the deal from the French, German and British governments is considered to be pivotal to the merger going ahead. While European law allows so-called government "golden shares" to be issued by defence companies, single market rules do not allow them within other businesses.

The combination of BAE and EADS would create a company that is only 50 per cent defence-focused; but the other half of the business would be civil aviation-focused. Both companies are now likely to have to persuade European officials that the combined group's operations should be regarded as relevant for national security considerations. However, if the plan is considered by Brussels to be illegal, the deal may be in jeopardy.

Although a merger between BAE Systems and EADS would create the world's second-largest civil/military company, the merger creates significant strategic headaches, notably in maintaining BAE's existing close and hard-won relationship with the US.

BAE Systems' information technology division is one of the 10 largest IT providers to the US government. In 2010 US-related contract awards included providing more than 12,000 desktops across the US intelligence community in a deal valued at £192m; a £26m contract to support the Federal Bureau of Investigation's enterprise network operations and information assurance.

BAE Systems' IT business in the UK is divided between specialised ICT for commercial or military use, project management and the work of Detica, the IT service and business and technology consulting firm it owns. Detica provides a range of services, including fraud and serious crime prevention, enterprise information management and business intelligence, risk management and regulatory compliance. Detica was one of the three companies recently shortlisted to provide a service integration and management (SIAM) capability at the Foreign and Commonwealth Office.

The proposed merger is unlikely to markedly affect BAE Systems' IT business and EADS' Astrium and Cassidian communications businesses.

This article was originally published at Government Computing.

Government Computing covers the latest news and analysis of public sector technology. For updates on public sector IT, join the Government Computing Network here.

Protecting against web application threats using SSL

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.