RAYTHEON HAS CLOSED its $475 million deal to buy Chrysler's defence and aerospace business, which will be merged with Raytheon's E-Systems subsidiary acquired for $2.3 billion in 1995.

The acquisition was finalised a day after the group settled Federal Trade Commission concerns about the transaction. Raytheon agreed to erect an "information firewall" between itself and Chrysler Technologies Airborne Systems over a US Navy contract on which they are competing.

The Texas-based business modifies military, commercial and VIP aircraft, employs nearly 3,000 people and has annual sales close to $500 million.

Source: Flight International