Boeing Chief Executive Phil Condit has revived the albeit distant prospect of a major transatlantic arms industry merger, saying a deal with BAE Systems is a possibility, if not immediately.
Speaking after meeting with European Union Competition Commissioner Mario Monti, Condit told reporters on Friday that Boeing wants to increase ties to Europe and there was a possibility of a merger deal with BAE, Europe's biggest defence firm, but not yet.
"Is it a possibility?" Condit said when asked about recent media reports suggesting a deal with the British defence firm was being looked at. "It could be. We are looking at a number of opportunities...There is nothing in the offing here shortly."
In London, BAE BA.L said it stood by previous comments that it was the nature of the defence business where the same industry players are rivals in some projects and partners in others that it was in contact with most major companies, including Boeing.
But that did not necessarily involve any talks about outright mergers, a BAE spokesman said.
"There is nothing new on this subject. Would someone please listen," he told Reuters.
Boeing BA.N and BAE have been considered potential transatlantic merger partners for years. BAE has made no secret of its ambitions to expand in the U.S., the world's biggest defence market, where it is one of the few European companies that enjoys the trust of the Pentagon.
However, the British government retains a "golden share" in BAE and said in January that it has no plans to scrap a limit on individual foreign shareholdings which prevents a full merger.
This does not stop the companies forming alliances or joint venture agreements though, and they already have a number of collaborative programmes.
Condit was speaking on Friday at a news conference called to introduce a new high-profile lobbyist for NATO and the EU.