THE US FEDERAL TRADE Commission (FTC) has accepted a settlement offered by Lockheed and Martin Marietta to overcome anti-trust objections to their merger. Final FTC approval is still pending, but the companies expect their $10 billion alliance to be completed in mid-March.
Lockheed Martin will not be required to divest any businesses under the settlement, which resolves FTC concerns over the effect of the merger on competition in space-based early-warning systems, expendable launch-vehicles and combat aircraft.
The company will be prohibited from enforcing exclusivity provisions in existing teaming agreements on space-based early-warning systems between Lockheed and Hughes Aircraft and Martin Marietta and Northrop Grumman. Sensor suppliers Hughes and Northrop Grumman will be free to compete with Lockheed Martin or to team with other companies.
The agreement prohibits Lockheed Martin's launch-vehicle divisions from gaining access to any non-public information which its satellite divisions receive from competing space-booster manufacturers. Similarly, the deal prevents the company's military-aircraft division obtaining proprietary information which its electronics division receives when supplying LANTIRN navigation and targeting systems to competing aircraft manufacturers.
The settlement also prohibits Lockheed Martin from modifying the LANTIRN in a way which discriminates against competing US military-aircraft manufacturers. This is not expected to prevent Lockheed installing an internal LANTIRN system in its proposed F-16ES, which competes with the McDonnell Douglas F-15E.
The FTC announcement follows US Department of Defense endorsement of the merger (Flight International, 11-17 January, P12). Final FTC approval is expected after a 60-day comment period.
Source: Flight International
