Northrop to buy US rocket maker
Defence contractor gets access to Nasa and US military contracts
US defence contractor Northrop Grumman said on Monday says it would will buy missile and rocket maker Orbital ATK Inc for about $7.8bn in cash, giving it access to lucrative contracts with Nasa and the US military. The deal, which comes as North Korea tests threatening missiles, will also help Northrop increase its arsenal of missile defence systems and is a rare departure for the company, which has not made a large acquisition in several years. Northrop last bought TRW Inc in 2002 for about $7.8bn. The acquisition, which would establish Orbital as a new, fourth business sector under Northrop Grumman, comes ahead of a likely jump in demand from the planned upgrades of US ballistic systems. The US air force called last summer in 2016 for proposals to replace its ageing nuclear cruise missiles and intercontinental ballistic missile (ICBM) system as the military moves ahead with a costly modernisation of older nuclear weapons systems. Northrop’s offer price of $134.50 per Orbital share...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.