Northrop Grumman has matched General Dynamics' $2.6 billion offer for aircraft carrier builder Newport News with a rival bid which it believes will be more likely to win US Government approval.
Northrop Grumman, which completed the acquisition of warship builder Litton in April, says the agreed take-over of Newport News by GD "raises serious anti-trust issues". It would leave the USA with only one nuclear submarine and ship builder. The company cites Department of Defense analysis which indicates that more than 95% of US Navy shipbuilding research and development investment would reside with a combined GD-Newport News entity.
Newport News says it is considering the rival offer, which GD calls "hostile". Whereas GD is offering $2.1 billion in cash, plus the assumption of $500 million in debt, Northrop Grumman is offering 75% in stock and 25% in cash.
Source: Flight International