International Paper to buy Union Camp in a $5 billion deal

Article Abstract:

Purchase, NY-based International Paper Co. announced plans to buy Wayne, NJ-based Union Camp Corp. in a $5 billion stock deal that includes $1.6 billion in debt assumption. The stock market reacted favorably as did analysts who say the industry is about 10 years behind the times when it comes to consolidation for the economies it will bring. IP will has over 80,000 employees in 30 countries; UC has 18,000 in 40 countries; staff reductions and closing offices and plants could be part of the plan to cut costs along with other overhead reductions.

PAPER AND ALLIED PRODUCTS, Paper & Allied Products, Paper Manufacturing, Mergers, acquisitions and divestments, Abstract, Paper industry, International Paper Co., IP, Union Camp Corp., UCC

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Lockheed cancels Northrup merger

Article Abstract:

The Lockheed Martin Corp. cancelled plans for a $8.3 billion acquisition of Northrup Grumman Corp. after the government objected to the merger on antitrust grounds. The merger would have resulted in the country's largest military supplier but the government believed it would have severely limited competition by creating a high level of vertical integration at Lockheed. Industry analysts believe the failed merger represents a sea change in Pentagon policy which previously had supported consolidation of defense industries.

Comment:

Cancelled plans for $8.3 bil acquisition of Northrup Grumman Corp. due to government's antitrust objections

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Northrup limps as Lockheed walks away

Article Abstract:

Northrop Grumman Corp.'s stock prices fell sharply following Lockheed Martin Corp.'s decision to back away from a proposed merger with Northrop. The $8.3 billion acquisition of Northrop by Lockheed Martin, the country's largest military contractor, had been opposed by antitrust regulators at the US Justice Dept. who believed that the $28 billion giant would have an unfair advantage over competitors in the lucrative defense industry. Industry analysts are uncertain about Northrop's future following the failed merger.

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