European Aeronautic, Defence & Space Co. (EAD)’s planned merger with BAE Systems Plc (BA/) may escape a full review by European Union regulators because governments can exempt defense-industry deals from antitrust scrutiny. EADS, the parent of Airbus, is negotiating with Germany, France, Spain, the U.K. and the U.S. on the merger, which would create the largest civil-aviation and defense company, with a combined market value of $45 billion. Management seeking approval of the deal must persuade officials in France, which owns a direct stake in EADS, and the U.K., which can veto any change of ownership in BAE.
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