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Government Spells out What it Finds Troublesome about ProposedMerger
March 12, 1998 (by
Lieven Dewitte) -
The government explained that there are a number of areas of concern, such as in the potential consolidation of electronics warfare systems.
For example, the merger would produced only one supplier of the Airborne Early Warning radars instead of the two that now exist.
It also would create a single source for the electro-optical missile warning systems and merge the two prime contractors for anti-submarine warfare systems. Aircraft is also a problem, given that Lockheed and Northrop are the companies with the most experience in stealth technology.
The officials said they had laid out three options in a meeting March 6. The options reflected the government's analysis of the matter as the customer, but they did not amount to demands that the companies must comply with before the government would approve the merger, both officials said.
The three options: divestiture of selected electronics technologies, divestiture of all such technologies and opposition to the merger.
It also would create a single source for the electro-optical missile warning systems and merge the two prime contractors for anti-submarine warfare systems. Aircraft is also a problem, given that Lockheed and Northrop are the companies with the most experience in stealth technology.
The officials said they had laid out three options in a meeting March 6. The options reflected the government's analysis of the matter as the customer, but they did not amount to demands that the companies must comply with before the government would approve the merger, both officials said.
The three options: divestiture of selected electronics technologies, divestiture of all such technologies and opposition to the merger.
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