Northrop Gets OK to Acquire Newport

Northrop Grumman Corp.’s planned $2.6-billion purchase of Newport News Shipbuilding Inc. was cleared by the Justice Department, a week after rival defense contractor General Dynamics Corp. withdrew its bid.

Antitrust regulators closed their investigation of the acquisition, allowing the transaction to move forward, Northrop said.

The Justice Department sued to block General Dynamics’ offer on Oct. 23 because the combination would eliminate competition for nuclear submarines.

Newport News, a maker of submarines and aircraft carriers, agreed to be acquired by General Dynamics on April 25. Northrop matched the offer in May, saying its proposal had a better chance of approval. The Pentagon, which endorsed the Northrop proposal, had rejected a similar General Dynamics offer in 1999.

Northrop announced the news after the markets closed. Shares of Los Angeles-based Northrop closed up 21 cents at $99.81, and Newport News rose 35 cents to $69.40 and General Dynamics rose $1.48 to $85.48, all on the New York Stock Exchange.