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. <br><br>The boards of directors of both companies approved

Thursday, November 8th 2001, 12:00 am

By: News On 6


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.
logo

Get The Daily Update!

Be among the first to get breaking news, weather, and general news updates from News on 6 delivered right to your inbox!

More Like This

November 8th, 2001

September 29th, 2024

July 4th, 2024

April 15th, 2024

Top Headlines

October 6th, 2024

October 6th, 2024

October 6th, 2024

October 6th, 2024