US defense group Northrop Grumman is poised to buy out smaller rival Orbital ATK in a deal worth $7.5 billion, according to the Wall Street Journal.
The deal, which comes around two weeks after industrial conglomerate United Technologies acquired aerospace supplier Rockwell Collins in a $30 billion deal, could be formalized by Monday, the paper said, quoting sources close to the matter.
Northrop is valued at $46.5 billion, while Orbital is valued at $6.3 billion.
The potential transaction comes amid high tensions with North Korea and as American defense firms are under pressure to maintain their profit margins while customers demand better value for money.
In 2015, Northrop won an $80 billion mega-contract from the US military for the Long Range Strike Bomber planned for the mid-2020s.
Orbital specializes in making rocket launchers and missiles, including for Elon Musk's SpaceX.
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UNITED TECHNOLOGIES
NORTHROP GRUMMAN
BOEING
TESLA MOTORS
LOCKHEED MARTIN
L3 Technologies acquires Adaptive Methods Inc.
L3 Technologies has expanded its presence in the undersea products market with the acquisition of Adaptive Methods Inc., a systems engineering firm.
Under the acquisition announced Tuesday, Adaptive Methods will be called L3 Adaptive Methods, integrated into L3's Sensor Systems business segment.
The financial terms of the transaction were not disclosed.
Adaptive Methods is … read more
