Lockheed Martin Gets Final Regulatory Approval For Sikorsky Aircraft Acquisition

(RTTNews) - Lockheed Martin (LMT) has received the final regulatory approval needed to close its acquisition of Sikorsky Aircraft, a world leader in military and commercial rotary-wing aircraft, from United Technologies Corp. (UTX). Lockheed Martin anticipates closing the acquisition on Friday, November 6.

The completion of the regulatory review by the Ministry of Commerce of the People's Republic of China marks the end of a successful and comprehensive regulatory review process in eight jurisdictions.

Once completed, the acquisition of Sikorsky Aircraft will advance Lockheed Martin's commitment to provide its customers with mission-ready solutions that are affordable and efficient, while expanding its core business into the growing areas of helicopter production and sustainment, Lockheed Martin said.

Lockheed Martin in July said that it agreed to buy the Sikorsky Aircraft business of United Technologies Corp. for $9 billion in cash. However, the price was effectively reduced to about $7.1 billion, after taking into account a tax benefit of about $1.9 billion resulting from the deal.

Meanwhile, Lockheed Martin Corp., Lockheed Martin Aeronautics Co., is being awarded an undefinitized contractual action not-to-exceed $5.37 billion to the previously awarded low-rate initial production Lot IX F-35 Lightning II Joint Strike Fighter advance acquisition contract, the U.S. Navy said today.

This modification provides for the procurement of 41 F-35A aircraft, including 26 F-35As for the Air Force; six F-35As for Norway; seven F-35As for Israel; two F-35As for Japan; 12 F-35Bs, including six for the Marine Corps and six for the British Royal Navy; and two F-35Cs for the Navy. Work will be performed in Fort Worth, Texas (30 percent); El Segundo, California (25 percent); Warton, United Kingdom (20 percent); Orlando, Florida (10 percent); Nashua, New Hampshire (5 percent); Nagoya, Japan (5 percent); and Baltimore, Maryland (5 percent), and is expected to be completed in December 2017.

Fiscal 2016 aircraft procurement (Air Force, Marine Corps, and Navy); and non-U.S. Department of Defense participants and foreign military sales funds in the amount of $625,099,999, are being obligated on this award, none of which will expire at the end of the current fiscal year.

Separately, Bloomberg reported Lockheed Martin is exploring a sale of $600 million in alternative assets to reduce exposure to private-equity funds.

The portfolio is held by the Lockheed Martin Investment Management Co., a subsidiary of Lockheed that manages employees' post-retirement plans. Lockheed is working with an adviser and a deal may be completed by the end of the year, the report said citing people familiar with the matter.