Northrop Grumman acquisition makes it one of top 5 defense contractors
SPECIAL TO WORLD TRIBUNE.COM
Friday, March 30, 2001
WASHINGTON — Northrop Grumman has cleared all of its hurdles in
efforts to acquire Litton Industries.
The last hurdle was that set by the U.S. government. Earlier, the
European
Union approved the acquisition.
On Friday, the Federal Trade Commission gave the okay for Northrop
Grumman to acquire Litton Industries. Both are major contractors for the
Pentagon.
"As a result, all U.S. and international governmental and regulatory
reviews that are required for the completion of the offer to purchase all
outstanding and common common and preferred stock of Litton have been
received," Northrop Grumman said in a statement.
The acquisition would make Northrop Grumman one of the top five U.S.
defense contractors. Litton develops electronic systems as well as
non-nuclear warships for the U.S. Navy.
Northrop Grumman has extended its offer for Litton's stock until Monday.
In a related development, the EU's European Commission has approved the
merger of Paris-based Thales and the U.S. Raytheon. The merger would form a
new company that would eliminate a major competition in air defense, command
and control systems.
"In view of the presence of other large and experienced competitors, the
commission has concluded that the operation would not raise competition
issues," the EC said.
Raytheon is the producer of the PAC-3 anti-missile defense system. The
PAC-3 underwent a successful test over the weekend at New Mexico's White
Sands missile range.
Friday, March 30, 2001
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