Amove to merge French defense electronics giant Thales with EADS is running out of steam, barely days after surfacing. In sharp contrast with information leaked earlier this month, the merger "isn't on the agenda [anymore]." The consolidation move was triggered by the French government, which earlier pushed through the takeover of state-owned Snecma propulsion group by Sagem, a French independent defense electronics firm. Both actions are widely thought to have originated with outgoing Finance Minister Nicolas Sarkozy, an advocate of entrenching national companies in strategic econom- ic sectors to remain competitive globally. In the same vein, Sarkozy, in the last few months, tried to persuade Thales to combine its naval arm with DCN, a unit of DGA French armaments agency.
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