Franco-German Deals Fade as Industry Trauma Kills Megamerger

When it comes to doing big cross-border mergers with the French, the Germans would rather not.

Germany is weighed down by its suspicion that it ends up the loser in such deals, a suspicion with some basis in fact, according to analysts and academics. That distrust played a role in Chancellor Angela Merkel’s decision this month to kill the planned merger of European Aeronautic, Defence & Space Co. with BAE Systems Plc, they said.