Germany denied responsibility for the failed merger of Airbus parent EADS and Britain's BAE Systems on Wednesday, but an official acknowledged that forming a world defense giant would have created difficulties in Berlin.
"Germany alone did not block the merger. There were also reservations on the French side," said the German official, who cited concern in Berlin about the long-term fate of EADS sites in Germany and about investors' negative view of the plan.
The German government did not share the strategic view that the merged company would have better chances on the U.S. market, said the official, who spoke on condition of anonymity.
"This would have created the biggest defense company in the world. But defense is an especially sensitive subject in Germany," said the official.
(Reporting by Andreas Rinke; Writing by Stephen Brown)