BAE Systemshas warned that it will walk away from its proposed €35bn tie-up with EADSif the deal waters down its special relationship with the Pentagon.
“BAE will not do this deal if its Special Security Arrangement has to change to look more like that of EADS,” said one person close to BAE, in a sign of the complexities surrounding one of Europe’s largest and most sensitive industrial mergers in years.
This SSA specifies that BAE’s top leadership in the US is American, among other things, and has allowed the UK’s biggest defence company to work on many lucrative US national security projects.
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