ADS director of policy Howard Wheeldon
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BAE and EADS a 'fantastic combination'

13 September 2012 Last updated at 12:39 BST

A potential merger between UK defence contractor BAE systems and European aerospace firm EADS is an attractive combination according to the industry body for Aerospace, Defence and Security and Space (ADS).

In a potential tie-up, BAE would own 40% and EADS 60% of the new firm.

Director of policy for trade organisation ADS Howard Wheeldon told BBC News that there is "no overlap" between the companies, meaning the deal would be about growth rather than efficiency savings.