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National, corporate interests threaten creation of the largest defense industry firm

BERLIN — When European aerospace giant EADS — the owner of Airbus — and British defense company BAE Systems last month announced they were holding talks to merge, they were fulfilling a long-standing plan to create the world’s largest defense company. However, national interests — along with those of companies that also hold stakes in each firm — may yet scupper the $49 billion deal.
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