Sikorsky

The US authorities have reportedly approved Lockheed Martin ‘s $9bn acquisition of Sikorsky Aircraft business from United Technologies (UTC).

Reuters reported citing Lockheed’s filing with the US Securities and Exchange Commission that the company already received approval from authorities in Japan and South Korea.

In July, UTC reached an agreement with Lockheed to sell its helicopter making unit.

The review was conducted by the US Department of Justice with the support of the defence department and other federal agencies.

In addition, the deal is now expected to receive approval from the European Union and countries including China where both the companies run businesses.

According to the news agency, multiple sources familiar with the matter revealed that the company is likely to close the acquisition before the end of the year.

The new acquisition is expected to help Lockheed Martin to achieve strong revenues in the medium term.

UTC president and CEO Gregory Hayes previously said: "Sikorsky’s acquisition by Lockheed Martin, one of the world’s leading aerospace and defence companies, will ensure it remains a technology leader at the forefront of vertical lift.

"Sikorsky’s acquisition by Lockheed Martin, one of the world’s leading aerospace and defence companies, will ensure it remains a technology leader at the forefront of vertical lift."

"We are committed to working closely with Lockheed Martin to execute a seamless transition for customers and employees."

Lockheed and Sikorsky are currently working together on several programmes for the US Navy and the US Marine Corps.

Earlier, UTC had also shortlisted Textron for the acquisition of Sikorsky Aircraft. The company proposed a reverse morris trust (RMT) merger between Sikorsky and Textron.

Boeing had also expressed interest in a potential deal to purchase the aircraft business.


Image: A US Air Force Combat Rescue Helicopter. Photo: courtesy of Rockwell Collins