RAYTHEON'S$3 billion acquisition of Texas Instruments' (TI) defence business has been approved by the US Government, but the firm must sell the TI unit which makes components for advanced airborne radars.

The unit produces monolithic microwave integrated-circuits (MMICs), key elements of active-array radars such as the Northrop Grumman APG-77 in the Lockheed Martin/Boeing F-22. In consenting to the Raytheon/TI deal, the US Department of Defense (DoD) required the divestiture to ensure continued competition for the supply of MMICs. Raytheon is now awaiting US Government approval of its $9.5 billion acquisition of Hughes.

The likely major concern with this transaction is the fact that Raytheon and Hughes are the only suppliers of air-to-air missiles to the DoD.

The TI and Hughes acquisitions will boost Raytheon's annual revenues above $20 billion - $13 billion in defence electronics.

Source: Flight International