The marriage between EADS and BAE Systems is logical as the defence market shrinks further and the United States pivots towards Asia. The challenge will lie in the governments that influence these two firms.
The rumoured merger between EADS and BAE Systems is a reflection of longer term trends within the defence industry. But short term impediments will have to be overcome to ensure this deal goes through.
The proposed merger of BAE Systems and EADS has naturally attracted a number of concerns, from safeguarding sovereign defence industries to job cuts through rationalisation. But are these concerns with foundation?