NORTHROP Grumman Corp., Newport News Shipbuilding announce $2.1 billion merger agreement - - Tulsa, OK - News, Weather, Video and Sports - |

NORTHROP Grumman Corp., Newport News Shipbuilding announce $2.1 billion merger agreement

NORFOLK, Va. (AP) _ Newport News Shipbuilding Inc. has agreed to a $2.1 billion takeover by Northrop Grumman Corp., the companies announced Thursday.

The boards of directors of both companies approved the terms of the transaction, in which the Los Angeles-based conglomerate will acquire all the outstanding shares of Newport News.

In an exchange offer, Newport News Shipbuilding's shareholders may elect to receive either $67.50 per share in cash or a number of shares of Northrop Grumman common stock designed to provide a value of $67.50.

Northrop also will assume of $500 million of Newport News debt, the companies said.

``We are very pleased with our strategic acquisition of Newport News,'' Kent Kresa, Northrop Grumman chairman and chief executive officer, said in a statement. ``With Newport News, we are creating a $4 billion world-class, fully capable shipbuilding enterprise with expertise in every class of nuclear and non-nuclear naval vessel.''

William Fricks, Newport News chairman and chief executive officer, said the merger will ``enhance the future of Newport News Shipbuilding, its employees and our ability to serve our primary customer, the U.S. Navy.''

Asked about job cuts, Northrop Grumman spokesman Randy Belote said, ``We don't anticipate significant layoffs. There will be some obvious corporate headquarter redundancies.'' He declined to give specifics.

Newport News Shipbuilding spokeswoman Jennifer Dunn did not immediately return a telephone call seeking comment.
Powered by Frankly
News On 6
303 N. Boston Ave.
Tulsa, OK 74103 is proud to provide Oklahomans with timely and relevant news and information, sharing the stories, pictures and loves of Oklahomans across our great state.
All content © Copyright 2000 - 2018 KOTV. Oklahoma Traveler™ is a registered trademark of Griffin Communications. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.