|IMMEDIATE RELEASE||November 6, 1998||(703)697-5737(public/industry)|
The Department of Defense today advised the Department of Justice Antitrust Division that it has no objection to General Dynamics Corp.'s proposed acquisition of National Steel and Shipbuilding Co. (NASSCO), a San Diego shipbuilding and repair business. The DoD concluded that this acquisition, which was announced on Oct. 8, would not adversely affect competitions on future shipbuilding and repair contracts.
This decision is consistent with the Department's support of mergers that reduce excess capacity or lower costs, and yet sustain competition on its programs. The Department will continue to support those mergers that meet these criteria. Secretary of Defense William S. Cohen said, "Our action on this merger is another positive example of the Department's support for mergers that provide potential cost benefits and retain a competitive base in the defense industry."
In fiscal year 1997 General Dynamics was ranked number four among the top 100 defense contractors with prime contracts awarded in that year totaling $3 billion. With the purchase of NASSCO, the company will have three shipyards that include Electric Boat Co. in New London, Conn. and Bath Iron Works in Bath, Maine.