Northrop-TRW Deal Viable, Pentagon Says
Northrop Grumman Corp.’s $11.8-billion takeover of TRW Inc. has no “showstopper†antitrust issues, even as other military contractors worry they might lose access to products the two companies produce, the Pentagon’s top acquisition official says.
This concern was raised by Lockheed Martin Corp., the Air Force, Navy, Army and the National Reconnaissance Office that buys spy satellites, said Edward “Pete†Aldridge, the Pentagon’s undersecretary for acquisition.
“We are not finding any showstoppers,†Aldridge said. “If we saw a problem that we thought was insurmountable, we would try to convey that to the people early.â€
Aldridge’s remarks are the first official status report on the proposal that would bring Northrop, the No. 3 U.S. defense contractor, about $2 billion more in Pentagon contracts, bringing it closer to No. 1 Lockheed and No. 2 Boeing Co. The Justice Department also is reviewing the deal.
TRW shares rose 1.45 cent to $55.55, while Northrop Grumman rose $4.96 to $115.68, both on the New York Stock Exchange.
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