1998. GEC was also under pressure to participate in defence industry consolidation. Reporting the appointment of George Simpson as GEC managing director in 1996, The Independent had said "some analysts believe that Mr Simpson's inside knowledge of BAe, a long-rumoured GEC bid target, was a key to his appointment. GEC favours forging a national "champion" defence group with BAe to compete with the giant US organisations". When GEC put MES up for sale on 22 December 1998, BAE abandoned the DASA merger in favour of purchasing its British rival. The merger of British Aerospace and MES was announced on 19 January 1999. Evans stated that in 2004 that his fear was that an American defence contractor would acquire MES and challenge both British Aerospace and DASA. The merger created a vertically integrated company which The Scotsman described as "[a combination of British Aerospace's] contracting and platform-building skills with Marconi's coveted electronics systems capability". for example combining the manufacturer of the Eurofighter with the company that provided many of the aircraft's electronic systems; British Aerospace was MES' largest customer. In contrast, DASA's response to the breakdown of the merger discussion was to merge with Aérospatiale to create the European Aeronautic Defence and Space Company (EADS), a horizontal integration. EADS has since considered a merger with Thales to create a "fully rounded" company. While MES was responsible for the majority of GEC's defence sales other GEC companies achieved defence related sales, principally GEC Alsthom, GEC-Plessey Telecommunications (GPT) and GEC Plessey Semiconductors. Organisation Marconi Avionics Marconi North America Marconi Naval Systems Alenia Marconi Systems (AMS) Matra Marconi Space Thomson Marconi Sonar Marconi Research Centre Marconi Radar Systems Marconi Communications Systems Major projects This is a partial list: Produced 12 of the class of 16 Type 23 frigates. Also the major electronics & equipment supplier for the class. Civil avionics, e.g. Boeing 777 fly-by-wire systems UK Prime Contractor on the Horizon CNGF programme until 1999. Following the withdrawal of the UK from the programme MES was awarded the subsequent Type 45 destroyer Prime Contractor position several days before merging with BAe. Part of Raytheon ASTOR bid team Royal Navy fleet submarines Brimstone Anti-Armour Missile TIALD laser designator pod AI.24 Foxhunter, radar for the Tornado ECR-90, radar for the Eurofighter Typhoon. Member of Boeing X-32 JSF development team Naval weapons Spearfish torpedo Sting Ray torpedo Spacecraft Ariel 6 Prospero X-3 Zircon (satellite) See also Aerospace