German Chancellor Angela Merkel said on Monday her government was studying a planned merger between Franco-German aerospace and defense group EADS and Britain's BAE Systems and would give its answer "within the deadlines".
The two companies are lobbying relevant governments to allow the formation of the world's biggest aerospace and defense company.
"We are discussing and evaluating the EADS-BAE merger plans and we are in discussions with others on this. We will give an answer within the deadlines," Merkel told a news conference.
The Financial Times Deutschland newspaper, citing industry sources, said on Sunday EADS was ready to offer Germany a veto right and job guarantees in its bid to gain Berlin's approval for the merger.
(Reporting by Noah Barkin and Stephen Brown, writing by Gareth Jones)