Lockheed Martin is selling General Electric three business units for $2.8 billion. The deal will see the activities exchanged for 29 million shares of preferred stock which GE acquired when it sold its aerospace unit to Lockheed Martin in 1993, plus a small cash payment by the latter to equalise the value of the exchange.
As part of the stock-swap-plus-cash deal, GE will acquire Lockheed Martin's engine-components business located near Baltimore, Maryland. Lockheed Martin Aerostructures produces thrust reversers for GE and Pratt & Whitney large turbofan engines. Lockheed Martin will retain the US Navy's Vertical Launch System business. It will lease space to GE at its Middle River plant.
The deal also includes Access Graphics, a computer firm in Boulder, Colorado, and Lockheed Martin's stake in the Globalstar telecommunications network.
Source: Flight International
