Defence Secretary Philip Hammond
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BAE-EADS deal 'just too difficult'

Aerospace and defence firms BAE Systems and EADS have decided to cancel their planned merger, after the deal proved to be "just too difficult" according to UK Defence Secretary Philip Hammond.

Aerospace and defence firms BAE Systems and EADS have decided to cancel their planned merger, after talks were thwarted by political deadlock.

It followed days of talks between the UK, French and German governments to overcome political objections.

UK Defence Secretary Philip Hammond told BBC News that the differences between the national governments had made the deal "too difficult".