EUROPEANS BACK BOEING MERGER.Byline: James R. Carroll Knight-Ridder Tribune News Wire Defusing de·fuse tr.v. de·fused, de·fus·ing, de·fus·es 1. To remove the fuse from (an explosive device). 2. To make less dangerous, tense, or hostile: a potential trans-Atlantic trade crisis, European regulators agreed in principle Wednesday to the $14 billion merger of the Boeing Co. and McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company. Corp. The accord clears the way for the birth by early August of a global colossus Colossus - (A huge and ancient statue on the Greek island of Rhodes). 1. Last-minute concessions from Boeing and pressure from President Clinton resolved the deadlock See deadly embrace. (parallel, programming) deadlock - A situation where two or more processes are unable to proceed because each is waiting for one of the others to do something. , which could have derailed the merger and sparked a nasty battle of trade sanctions Trade sanctions are trade penalties imposed by one or more countries on one or more other countries. Typically the sanctions take the form of import tariffs (duties), licensing schemes or other administrative hurdles. between Europe and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community in Brussels put off a scheduled final vote on the merger until July 30 to allow its legal experts to iron out the fine details. But, after months of threatening to kill the deal, the panel is now expected to give its swift endorsement. ``There was broad agreement (in the commission),'' the European Union's competition commissioner, Karel Van Miert Karel Van Miert (b. 17 January 1942 in Oud-Turnhout, Belgium) is a socialist Flemish politician. He studied at Ghent University (1962–1966) and gained a degree in diplomatic sciences. , said in Brussels. ``The remedies the commission was striving for have largely been supplied.'' Clinton, in a statement from the White House, said, ``I am pleased that Boeing and the EU have resolved their differences. The Boeing-McDonnell Douglas merger will promote consolidation and efficiency in the U.S. defense industry and preserve the jobs of 14,000 workers at Douglas Aircraft Co.'' Reviewing the merger under their antitrust laws antitrust laws n. acts adopted by Congress to outlaw or restrict business practices considered to be monopolistic or which restrain interstate commerce. The Sherman Antitrust Act of 1890 declared illegal "every contract, combination.... , the Europeans had worried that the new Boeing would threaten Europe's aerospace industry and hold unfair advantages over its Airbus Industrie, which will be the sole remaining competitor for building large commercial jets. The merger was approved without conditions by the U.S. Federal Trade Commission on July 1. Delighted Boeing and McDonnell Douglas officials said the newly merged company, to be based in Seattle, would be able to begin operations as scheduled Aug. 4. ``Overall, I think we're very comfortable with the kind of agreements that we have reached and it gives us a position to go ahead,'' Boeing Chairman and Chief Executive Officer Phil Condit told reporters here. McDonnell Douglas President Harry Stonecipher Harry C. Stonecipher (born May 16, 1936 in Robbins, Tennessee) is the former President and Chief Executive of American aerospace giant Boeing. He submitted his resignation upon request of the Boeing Board of Directors on March 6, 2005, due to an improper relationship with a Boeing reiterated his conviction that the 200,000 employees of the new company were secure in their jobs. ``This merger is happening at a fortuitous time, when there's good growth in the businesses,'' he said. ``So we don't have to talk about people losing their jobs because we're talking about growth and how to be more efficient and productive.'' Boeing and McDonnell Douglas stockholders are scheduled to vote on the merger in Seattle and St. Louis on Friday. Although the merger was cast by politicians on both sides of the Atlantic as a high-stakes struggle between the United States and Europe, the competition between Boeing and Airbus is more complicated. Both companies, in fact, have large subcontractors and suppliers with thousands of employees on both sides of the ocean. And both manufacturers have European and American airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the as customers. The chief concessions from Boeing were in three areas: The company agreed to let three U.S. airlines out of a commitment to buy aircraft only from Boeing over the next 20 years, although the carriers' near-term commitment for 244 aircraft worth an estimated $17 billion remains intact. The exclusive contracts with American Airlines, Delta Air Lines and Continental Airlines constituted a lock on significant segment of the commercial airliner market, the Europeans argued. Responding to European concerns that the new Boeing's huge military and space business would benefit the commercial side with ``spillover'' technology, the company promised to license patents obtained under U.S. government-funded contracts so they would be available to other companies outside the United States. Such practice is typical in the aviation industry. McDonnell Douglas' commercial operations will remain a separate legal entity for 10 years and supply annual reports to the European Commission on its business activities. Boeing refused to agree to a European demand to sell Douglas Aircraft, and the Europeans eventually backed down. Boeing will be the second-largest defense company in the world, just behind Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. Corp. CAPTION(S): Photo Photo; (Color) BOEING-McDONNELL MERGER |
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