GEC stays on course for link with US giant

GEC has reiterated its interest in chasing a closer relationship with US defence giant Northrop Grumman, following last week’s collapse of the latter’s proposed merger with Lockheed Martin. ‘We’re interested in developments and will be pursuing any opportunities,’ a GEC spokesman said. The Northrop Grumman/ Lockheed Martin merger fell through when the US Department of […]

GEC has reiterated its interest in chasing a closer relationship with US defence giant Northrop Grumman, following last week’s collapse of the latter’s proposed merger with Lockheed Martin.

‘We’re interested in developments and will be pursuing any opportunities,’ a GEC spokesman said.

The Northrop Grumman/ Lockheed Martin merger fell through when the US Department of Defence said it would go to court if necessary to block the deal. The merger was also opposed by the US Justice Department on competition grounds.

After the merger was abandoned, Kent Kresa, Northrop Grumman’s chairman, said his company would continue to be ‘a strong, independent aerospace competitor’.

This was seen as marking a wish to fight any outright takeover, but the company may accept a closer relationship with GEC.

GEC chairman Lord Simpson admitted last April that his company was interested in Northrop Grumman. Talks between the two companies are continuing, GEC said this week.

Simpson wrote to the chairmen of Lockheed Martin and Northrop Grumman before the merger collapsed, offering to help overcome US government opposition.