Pentagon Questions Lockheed Merger
The planned $8.3 billion merger of Lockheed Martin Corp. and Northrop Grumman Corp. appeared in jeopardy Monday after the Pentagon said it has serious concerns about the deal, which would create a defense behemoth with 25 percent of the department’s budget.
The acquisition announced last July would make Lockheed Martin, already the nation’s biggest defense contractor, even bigger with products such as the B-2 stealth bomber and the MX missile system.
The two companies also would combine strengths in areas such as defense electronics, including the production of sophisticated radar and electronic countermeasures that enable the Pentagon to orchestrate high-tech combat operations.
“We have serious concerns about the competitive effects of the transaction,” said Pentagon spokesman Kenneth Bacon.