The creation of the world’s largest aerospace company may be on the way, Major merger of BAE Systems and EADS

UK's BAE Systems and European aerospace firm EADS are on talks over a possible merger. In a potential tie-up, BAE would own 40% and EADS 60% of the new firm. The new company would be the largest manufacturing company in the UK, employing tens of thousands of people in critical defence manufacturing and at Airbus.

BAE Systems plc, is a British multinational defence, security and aerospace company. It is among the world's largest defence contractors. 

The European Aeronautic Defence and Space Company N.V. (EADS) is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide. It is a consortium of aerospace and defence manufacturers from France, Germany and Spain.

The deal would create industry’s largest company, 'A world-class international aerospace, defence and security group'