Thursday, February 10, 2011

U.S. Opposes Large Defense Contractors From Merging


Defense Mergers Opposed by U.S. -- Wall Street Journal

The Pentagon's procurement chief is expected to deliver a message to Wall Street Wednesday: The Defense Department wants to discourage potential consolidation among top-tier defense contractors.

In remarks to an investment conference in New York, Ashton Carter, the undersecretary of defense for acquisition, technology and logistics, is expected to draw a line against major defense-sector mergers in an era of tighter defense spending. A draft of Mr. Carter's remarks says the Pentagon "is not likely to support further consolidation of our principal weapons-systems prime contractors."

His principal concern, Mr. Carter indicated during an interview, is maintaining competition and bolstering the Pentagon's buying power.

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More News On The U.S. Opposing Large Defense Contractors From Merging

Pentagon Welcomes Mergers Except for Top Six Suppliers -- Bloomberg
Pentagon open to mergers, but not at very top -- Reuters
Pentagon will not support big defence mergers -- Financial Times
Pentagon mostly fine with defense industry mergers -- the Hill
DOD Urges Consolidation For Lower-Tier Suppliers -- Aviation Week
Pentagon: Bring on the Contractor Mergers -- Government Executive

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