BAe glides over job cuts in merger
British Aerospace this week played down the threat of widespread finance job cuts as part of a planned rationalisation of the business, following the unveiling of the terms for its #16bn defence merger with GEC.
Finance director George Rose told Accountancy Age he could offer ‘no guarantees’ to accountants employed at BAe, manufacturer of the Hawk (above) or Marconi, the defence arm of GEC which BAe plans to buy for #7.7bn.
‘We can see a little bit of rationalisation. But given the rate of growth of BAe, I do not think there will be a significant problem,’ he said.
BAe is still to reveal whether it will account for the deal using merger accounting or acquisition accounting. He said the accounting approach was linked to the timetable for the completion of the merger arrangements and a final decision would be taken in a few weeks’ time.
Once the deal to create the world’s third-largest defence company is complete, FD John Mayo will remain at the old GEC with managing director Lord Simpson.