The European Commission (EC) has notified that it has approved Northrop Grumman’s acquisition of aerospace and defence technologies company Orbital ATK for approximately $9.2bn.
The current approval was granted under the European Union (EU) Merger Regulation. It will provide Northrop Grumman with sole control over Orbital ATK.
On 18 January, the commission received notification of the proposed operation that falls within the scope of Article 4 of the Merger Regulation.
Northrop Grumman continues to support the US Federal Trade Commission’s review of the transaction.
The EC ensured that the proposed transaction would lead to no competition concerns because the two companies involve different product markets.
The operation has been evaluated under simplified merger review procedure, after which the EC has decided not to oppose the notified operation and to announce it to be compatible with the internal market and with the European Economic Area (EEA) agreement.
In September last year, the two companies entered into a definitive agreement for the acquisition of Orbital ATK for around $7.8bn in cash, in addition to the assumption of $1.4bn in net debt.
Under the agreement, Northrop Grumman will pay $134.50 per share to Orbital ATK shareholders.
With the completion of the transaction expected in the first half of this year, the company intends to establish Orbital ATK as a new fourth business sector to focus on operating performance and an easy transition.
Perella Weinberg Partners serves as the exclusive financial advisor to Northrop Grumman and Cravath, Swaine & Moore operates as the company’s legal counsel for the acquisition.