Discussions with governments on a potential merger between BAE Systems and EADS have been constructive, EADS’ CEO has reportedly told employees.
Bloomberg obtained a letter to EADS employees from CEO Tom Enders, where he said he was pleased with the progress of talks so far as the companies attempt to get government approval for the transaction, which Bloomberg values at $45 billion.
Enders believes the companies have little overlap with each other as EADS is one of the largest civil aviation firms while BAE is a large defense contractor, the letter reportedly says.
According to the story from Robert Wall and Andrea Rothman, German Chancellor Angela Merkel and French President Francois Hollande will meet in Germany this weekend to discuss the proposed merger.
France owns a 15 percent stake in EADS and the U.K. can veto any takeover of BAE, the report says.
The companies face an Oct. 10 deadline to either announce they will move forward with a merger or they are no longer interested in combining.