UK says EADS-BAE deal logical, but interests not met

BIRMINGHAM, England, Oct 10 (Reuters) - Britain's businessdepartment said on Wednesday the proposed merger of BAEand EADS had commercial logic of but only if it met theinterests if all parties.

The department said both firms would continue to besuccessful independent companies with a presence in Britaindespite the collapse of the deal.

"BAE Systems and EADS have decided today not to proceed withthe proposed merger. The two companies will remain as successfulindependent companies, each with a significant presence in theUK," it said in a statement.

"The government has always been clear that it could see thecommercial logic of this deal but that it would only ever workif it met the interests of all the parties involved," it added.

(Reporting by Mohammed Abbas; editing by Guy Faulconbridge)

((mohammed.abbas@thomsonreuters.com)(+44)(0)(207 542 7947))