In the beginning there was much hope, especially among M&A ibanker advisors, that the creation of the world's largest aerospace and defense company would be not only a fee bonanza but a statement that even in Europe's ongoing economic depression one can cobble together megadeals. Then things got sour as little by little the realization that the deal may fall through started creeping in. Moments ago, all hope was lost as both parties pulled out of further merger talks. From Reuters: "- EADS and BAE Systems will not ask for an extension to their merger talks on Wednesday, sources close to the negotiations said, calling an end - for now - to a plan to create the world's largest defence and aerospace company. "We will not be filing for an extension. It's over," one of the sources said. The two companies had until 1600 GMT to ask for an extension to the talks, which have come up against fierce governmental opposition as France and Germany sought to maintain control while Britain wanted less state ownership."
Don't worry though: even though nationalistic passions managed to scuttle a simple accretive for all M&A deal, Europe will surely succeed at a banking union... or deposit union... or ceding sovereignty to a transnational entity operating out of the catering capital of the world.
Just wait.