Europe approves Lockheed, Loral deal FTC, Pentagon also are reviewing purchase

Aerospace

March 29, 1996|By BLOOMBERG BUSINESS NEWS

BRUSSELS, Belgium -- The European Commission said yesterday that it gave its approval, as expected, for Lockheed Martin Corp.'s $9.1 billion acquisition of most of New York-based Loral Corp.

The commission has reserved its position on the link between Lockheed Martin and Loral Space and Communications Ltd. -- which Lockheed plans to spin off as a separately traded entity -- because of stockholding and licensing links between the companies.

The commission, executive arm of the European Union, said that according to Lockheed Martin, "the spin-off is not part of the concentration notified or a separately notifiable concentration."

Lockheed's agreement with Loral is also being reviewed by the Federal Trade Commission and the Pentagon.

Although regulators are expected to require Lockheed and Loral to institute changes to ensure competition for certain products, they are not expected to block the acquisition.

When the companies announced the takeover agreement in January they predicted regulatory approval by the end of February.

Bethesda-based Lockheed, the world's largest aerospace company, is buying most of Loral.

Not included in the merger are Loral's satellite operations, and its share of Globalstar, a partnership developing wireless communications products for Asia and other markets.

Pub Date: 3/29/96

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