Lockheed Martin and Northrop Grumman Informed Of Department of Justice Opposition to Combination
BETHESDA, MD, and CENTURY CITY, CA, March 9th, 1998 -- Lockheed Martin (NYSE: LMT) and Northrop Grumman said today they were informed over the weekend by the Department of Justice (DoJ) that the agency is fundamentally opposed to the proposed combination between the two companies. The two companies have agreed not to close the transaction until March 24. Vance Coffman, Lockheed Martin vice chairman and chief executive officer, and Kent Kresa, Northrop Grumman's chairman and chief executive officer, said, "If the companies' attempts to resolve the DoJ's concerns are not successful, it is anticipated the government will move to block the transaction. We continue to believe that significant savings of $1 billion per year are available from the merger, the majority of which will accrue to our government customers. The combination remains in the best interests of the government, customers, suppliers, companies and shareholders. We will vigorously oppose any attempt to block the transaction.