FTC to Let Boeing Purchase Hughes Division

The Federal Trade Commission is expected to announce today that it will allow Boeing Co.’s $3.75-billion purchase of Hughes Electronics Corp.’s space and communications division in El Segundo, but with conditions to prevent a competitive advantage. The FTC said the agreement is necessary to prevent Boeing from potentially raising costs to other competitors or having access to information that would reduce competition. Under the proposal, Boeing could no longer provide systems engineering and technical assistance services to the Defense Department for a classified program. The FTC said Boeing is the sole supplier of a particular unidentified classified program and Hughes is one of two competing contractors. Boeing’s launch vehicle division also could not have access to nonpublic information its satellite division receives from competing suppliers and must “erect firewalls” between its satellite and launch-vehicle divisions. The agreement is subject to final government approval.