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Northrop merger cleared
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November 2, 2001: 6:05 p.m. ET
DOJ closes investigation of Northrop $2.1B takeover of Newport News.
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NEW YORK (CNNmoney) - The Department of Justice completed its probe Friday of Northrop Grumman Corp.'s proposed $2.1 billion takeover of Newport News Shipbuilding Inc.
Los Angeles-based Northrop (NOC: up $0.21 to $99.81, Research, Estimates) is now clear to proceed with its acquisition of Newport News, the company said in a statement.
The DOJ has closed it investigation and the acquisition can go forth if the parties wish to proceed, a government spokeswoman said.
"We are very pleased with the action taken today by the Department of Justice," Northrop CEO Kent Kresa said. "We believe a combination of Northrop Grumman and Newport News Shipbuilding will serve the best interests of our shareholders, employees and customers as it continues to provide competition in an industry vital to the security and defense of our nation."
In May, defense contractor Northrop Grumman made a hostile $2.1 billion takeover bid for Newport News (NNS: up $0.35 to $69.40, Research, Estimates). Northrop's offer gives Newport shareholders the option to receive $67.50 per share in cash or shares of Northrop common stock.
Northrop's proposal followed a bid by General Dynamics, the No. 4 defense contractor, which offered to buy Newport in April, also for $2.1 billion.
Last week, General Dynamics (GD: up $1.48 to $85.48, Research, Estimates) called off its proposed acquisition after the DOJ filed a lawsuit to block its bid. 
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