LONDON (AP) -- Britain's BAE Systems PLC says it is abandoning a proposed merger with European counterpart EADS NV that would have created a global defense and aerospace giant.
The company says the two firms have "decided to terminate their discussions" because of conflicting interests between the governments involved.
The companies faced a Wednesday deadline on whether to go ahead with the merger, ask for more time or call it off.
The deal has been fraught with difficulties because of political objections from the governments of the U.K., France and Germany. All three must approve the deal for it to go ahead.