DOD Sees No Major Overlap in UTC-Raytheon Merger
June 17 2019 - 6:01AM
Dow Jones News
By Robert Wall
The Pentagon has no major concern about the merger of United
Technologies Corp. merger plan with Raytheon Co., but is still
reviewing the deal, the Defense Department's top weapons buyer said
Monday.
"We are looking at the deal," said Ellen Lord, the under
secretary of defense for acquisition and sustainment said in an
interview. But, she added, "we don't see a tremendous amount of
overlap. "
"I'm a believer in letting free markets play," she said in an
interview at the Paris Air Show.
Ms. Lord's predecessor had signaled he would oppose a merger
proposal among the top five Pentagon prime contractors. However,
Ms. Lord said: "I am not going to dictate to the primes what they
should and should not do."
Each deal would be reviewed on its unique merits, she added.
Ms. Lord has launched an effort for the Pentagon to more closely
scrutinize deals when they emerge. When a deal is announced, she
said she is seeking from across the Department of Defense detailed
feedback on the overlap and possible constraints a deal may
create.
"We want a dynamic industrial base where we have a great
diversity of companies," Ms. Lord said.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
June 17, 2019 05:46 ET (09:46 GMT)
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