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By Vago Muradian
WASHINGTON--Pending a nod from U.S. Justice Department antitrust officials and the findings of an interagency security panel, senior management at Britain's BAE SYSTEMS (BA.L) expects to conclude their planned $1.67 billion cash purchase of a Lockheed Martin (LMT) electronics business by the end of the year as anticipated, executives said.
Pentagon officials have already informed Justice regulators that they do not have major concerns with the transaction, which constitutes the most sophisticated U.S. defense business ever acquired by an overseas firm. DoD leaders, however, have asked Justice to adjudicate an agreement between the British company and Northrop Grumman (NOC) that has raised competitive concerns with the deal on two key electronic warfare programs.
Under U.S. law, the Justice Department or the Federal Trade Commission are charged with conducting antitrust reviews of mergers and acquisitions involving American companies. Should Justice not move to block the deal, the transaction would be free to conclude so long as the interagency Committee on Foreign Investment in the United States (CIFIUS) also accepts the transaction. The CIFIUS panel, which is headed by Treasury Secretary Larry Summers, is charged with reviewing the national security aspects of foreign purchases of U.S. companies.
According to sources, both Justice and CIFIUS are not expected to move to block the deal, allowing it to conclude as expected by...