Editing General Electric Company (section)

===Marconi Electronic Systems sale (1998–99)===
In July 1998, reports began linking [[British Aerospace]] (BAe) with the German aerospace group [[DASA]] to create a new European Aerospace and Defence Company.<ref>{{cite news |title = Business: The Company File: Defense merger on the radar |url = http://news.bbc.co.uk/1/hi/business/the_company_file/130305.stm |work = BBC News |date = 10 July 1998 |access-date = 15 September 2007}}</ref><ref>{{cite news |title = BAe and Dasa discuss proposals for merger: Aerospace groups still have 'important issues to resolve' |work = Financial Times |page = 1 |date = 24 July 1998}}</ref> GEC was also seen as a potential partner in a three-way merger with BAe and DASA.<ref>{{cite web |url = http://news.bbc.co.uk/1/hi/business/the_company_file/239057.stm |title = GEC spoils DASA / BAe party |work = [[BBC News]] |date = 20 December 1998}}</ref>

In December 1998, reports emerged that GEC was seeking a partner for MES, the value of which was greatly increased by the Tracor acquisition. Prospective partners included [[Thomson-CSF]] (by 1998 on the path to privatisation) and various American defence contractors (e.g. [[Lockheed Martin]] and [[TRW Inc|TRW]]).<ref>{{cite news |url=https://www.latimes.com/archives/la-xpm-1998-dec-28-fi-58247-story.html |title=Lockeed, Britain's GEC may be in merger talks |newspaper=[[Los Angeles Times]] |date=28 December 1998 |access-date=5 June 2010}}</ref> GEC had already been active in pursuing consolidation in the defence business. In 1997, it made an ultimately unsuccessful bid to the French government to privatise Thomson-CSF and merge it with MES.<ref>{{cite web |url = https://www.independent.co.uk/news/business/gec-set-to-combine-marconi-with-thomsoncsf-1260347.html |title = GEC set to combine Marconi with Thomson-CSF
|work = The Independent |first = Michael |last = Harrison |date = 7 May 1997}}</ref><ref>{{cite web |url = https://collection.sciencemuseumgroup.org.uk/people/cp64488/thomson-csf |title = Thomson-CSF: 1968 - 2000 |publisher = [[Science Museum Group]] |access-date = 23 September 2023}}</ref>

A merger of UK companies soon became the most likely development. In mid-January 1999, GEC and British Aerospace confirmed they were holding talks. On 19 January, it was announced British Aerospace was to acquire Marconi Electronic Systems for £7.7bn ($12.75bn).<ref>{{cite web |url=http://www.janes.com/articles/Janes-Navy-International-99/BRITISH-AEROSPACE-AND-MARCONI-ELECTRONIC-SYSTEMS-FORM-THE-THIRD-LARGEST-DEFENCE-UNIT-IN-THE-WORLD.html |title=British Aerospace and Marconi Electronic Systems form the third largest defence unit in the world |website=Jane's International |date=19 January 1999}}</ref><ref>{{cite web |url=https://www.theguardian.com/business/1999/jan/19/7 |title=BAe set to sign A8bn GEC deal with merger |work=The Guardian |date=19 January 1999}}</ref><ref name="scotsman2000">{{cite news |first=Andrew |last=Turpin |title=BAE eyes US targets after profit rockets |work=The Scotsman |publisher=The Scotsman Publications |page=26 |date = 4 March 2000}}</ref>