BERLIN (Reuters) - The German government has not yet given approval for Britain's BAE Systems (BAES.L) and Airbus owner EADS EADS.PA EADS.DE to merge, German political and industry sources told Reuters on Thursday.
German business daily Handelsblatt had previously reported the plan had the German government's blessing but sources told Reuters that checks were continuing and there were many tough questions that still needed to be answered.
An industry source said, however, there were encouraging signs from politicians in the countries involved that the merger could go ahead.
BAE Systems and EADS said on Wednesday that they were in advanced talks to create an industry giant that would overtake rival Boeing (BA.N) in sales and contend with defense cutbacks in Europe and the United States.
Reporting by Gernot Heller; Writing by Michelle Martin