BAE Boeing merger?

changed to reflect discussion below; see new thread for original topic

[edit on 27-6-2005 by waynos]

Well, I don't think the new US tactical transports will be very stealth (at least the stealth will not significantly influence the price). The main features of future tactical transports is the +/- 30 tons payload and shorter(or at least equal) tako off/landing range than C-130.
And IMO US will never in next 20 years buy Airbus tactical planes - especially in current Airbus VS Boeing situation (not even for JSF support - if you compare it there will be quite few percentage of JSF planes to be sold in EU when compared to the percentage of total A-400 order for USAF).

BTW a little offtopic - what do you think about the possibility of BAE merging with Boeing.

The designs I have seen for next gen US tactical transports all appear to be very ambitious and stealthy and as such I feel their R&D costs will eclipse those of the A400, but on the other hand you are right and it would indeed be a major surprise if the US selected the A400, far more so than when the EH101 beat the S-92 even.

About merger talks between BAE and Boeing, I haven't heard anything about this since talks stalled two years ago, do you have any fresh info about it? I know that BAE bought Boeings electronics division last year but I have heard nothing since.

Given the US current political stance towards 'foreigners' (including the UK) I cannot see how there would be any benefit for Britain at all in this. Of course at the first sign of economic downturn International companies retrench back to their homeland first so I can see the UK being left high and dry if it happened.

There was an article in from feb 2005 about it. Apparently the BAE considered the option to sell it's 20% Airbus holding and shipbuilding facilities (the Boeing conditions???, because Boeing don't want shipbulding and conflict of interests with Airbus) . The UK goverment was not happy about it because they invested £530m to the BAE for Airbus. The reason for such merger would be increased penetration of US market. Already today it makes 30% of BAE sales (UK 25%).

politics.guardian.co.uk...

I don't know if or how this ties into a BAE/Boeing merger, but BAE Systems is considering selling it's stake in Airbus and concentrating on more US military contracts.


"BAE Systems may sell 20% stake in Airbus
European defense company BAE Systems may sell its 20% stake in jetmaker Airbus by the end of the year, Dow Jones Newswires reported. BAE wants to focus on expanding its defense business in North America. Airbus is owned by EADS, and BAE can sell its stake to EADS for cash or shares. The Wall Street Journal/Dow Jones (subscription required) (6/27)"

[edit on 27-6-2005 by Zaphod58]

Thanks

The salient points in that article do seem to be the same ones that stalled the deal two years ago. Still, these things obviously don't happen overnight.

What concerns me is how much of a 'merger' would it really be? Wouldn't it really be a case of BAE being taken over? I don't know without looking but I would imagine that Boeing is far bigger than BAE so control would still firmly rest in the USA, in which case there is no 'penetration of the US market' in reality, just the total loss of our indegenous capability, not good IMHO.

BTW, waynos sorry for "hijacking" the original thread.

I think this would be a prime case for the UK gov to step in and block any proposed sale of BAE to the Americans (and you're right Waynos, no matter how it was dressed up BAE would always be the junior part in the equation).

If we had several defence firms it would be a different matter but we don't and therefore in recognition of the national strategic interest I cannot see how any such sale could possibly be or should be ever permitted.

Project partnerships and joint ventures are one thing but selling the whole entity off into a 'merger' with Boeing is going waaaaaaaay to far IMO and should never be permitted.

Can you imagine the USA, having distilled its defence industry into one large company tolerating the sale of that company in a similar venture?
Not on your life & neither should we.

BTW, waynos sorry for "hijacking" the original thread.

Its quite all right, I felt this was an interesting topic in its own right, thats why I did the edit, you could paste your A400 response into that thread if you want, after all it helps break up all the India/China threads a bit

[edit on 27-6-2005 by waynos]