LOCKHEED MARTIN, NORTHROP GRUMMAN ANSWER GOVERNMENT COMPLAINT
BETHESDA, MD, and CENTURY CITY, CA, April 10th, 1998 -- Lockheed Martin and Northrop Grumman today filed their joint answer to the complaint that was filed by the U.S. Department of Justice (DoJ). The government is seeking to block the proposed merger of the two companies. The companies' response emphasizes that the merger, with proposed divestitures, will not have any adverse competitive effects. The answer notes that the merger is consistent with other large defense transactions recently approved by the government, and is projected to result in efficiencies that will generate cost savings of at least $1 billion per year, most of which will accrue to the government.
Further, say the companies, the merger will enhance innovation, create efficiencies in research and development, lead to improvements for aircraft and electronics products, and enhance competition in the procurement of major weapons systems to the benefit of the U.S. armed services.