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US: Pentagon to review aerospace merger

 |  May 11, 2014

The US Pentagon is reportedly expecting to review the proposed merger between Orbital Sciences and Alliant Techsystems’ defense and aerospace operations.

The Department of Defense offered a statement that confirmed plans to examine the deal. “While the department does not support a merge among our main prime contractors, we review each transaction on the facts before us, and we plan to review this one accordingly,” a DOD spokesperson said.

The ability for the Department to review mergers follows the passage of the 2011 Budget Control Act, while allows the DOD to examine mergers involving top-tier defense suppliers and investigate whether the deal would harm competition.

The Pentagon’s review results will then me submitted to the Federal Trade Commission to determine its compliance with antitrust law.

According to reports, the Orbital/ATK deal would not lead to competition of the largest of defense contractors, but the deal would create a leader in its space operations.

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