British arms maker BAE Systems on Wednesday said it had ended merger talks with European aerospace giant EADS owing to a lack of accord with "various" government stakeholders.

British arms maker BAE Systems said it had ended merger talks with European aerospace giant EADS owing to a lack of accord with "various" government stakeholders.

"BAE Systems and EADS announce that they have decided to terminate their discussions," said a statement issued by BAE, whose chief excutive Ian King said the pair "were unable to reach an acceptable agreement with our various government stakeholders."