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DOJ Blocks Communications and Power Industries’ Acquisition Of General Dynamics’ Satellite Antenna

 |  May 31, 2020

The Department of Justice (DOJ) announced on May 28 that it will not allow satellite communications antenna provider CPI to acquire General Dynamics’ SATCOM Technologies unless CPI sells off its subsidiary ASC Signal Division.

The divestiture is necessary to preserve competition for large satellite ground station antennas for geostationary satellites in the United States, DOJ said in a statement.

California-based CPI, short for Communications & Power Industries, announced in August 2019 its intent to purchase SATCOM Technologies, the antenna systems business of General Dynamics Mission Systems.

SATCOM Technologies designs, manufactures, and installs satellite communications antenna systems used in commercial, defense and scientific applications. CPI stated this acquisition would complement CPI’s existing portfolio of government, military, and commercial products.

The merger was expected to close by the end of 2019, but the DOJ antitrust review concluded that the proposed acquisition would substantially lessen competition for the sale of large geostationary satellite antennas which are “an essential component of government, military and commercial satellite communication networks,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.

DOJ said CPI must divest ASC Signal Division before it can proceed with the acquisition of General Dynamics’ SATCOM Technologies. That includes ASC’s facilities in Texas and Ontario, Canada, as well as other assets related to large geostationary satellite antennas.

The Justice Department’s Antitrust Division filed a civil antitrust lawsuit on May 28 in the US District Court for the District of Columbia to block the proposed merger. At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.

Full Content: DOJ

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