Northrop, TRW continue talks with Justice
- By Patience Wait
- Dec 05, 2002
Northrop Grumman Corp. and TRW Inc. are still in discussions with the Justice Department related to their proposed merger, the companies announced Dec. 5.
The firms believe that an acceptable consent decree can be reached within the next several days, which would allow them to complete their pending merger following shareholder approval at meetings set for Dec. 11.
If the terms of a consent decree are not finalized by Dec. 9, however, the companies and the Justice Department have agreed that the merger will not close until a decree is finalized or until Dec. 16, whichever comes first.
The terms of the consent decree concern provisions to assure fair and open competition involving certain satellite technologies. Northrop Grumman and TRW do not expect that any divestitures will be required, the companies said.
Northrop Grumman of Los Angeles is a $17 billion global defense company, with nearly 96,000 employees and operations in 44 states and 25 countries. The acquisition of Cleveland-based TRW will add another $9 billion in annual revenue, creating a defense contractor with total revenue of $26 billion. Of that, about $7 billion is IT-related. The acquisition of TRW is valued at about $7.8 billion.