British defense contractor Ultra Electronics Holdings said it terminated the US$234 million acquisition of Schaumburg-based Sparton Corp. following an unfavorable antitrust review outcome from the US Department of Justice (DOJ), reported Reuters. .
Ultra Electronics said in July that it would buy Sparton, which makes anti-submarine warfare devices used by the US Navy, to create a major supplier in underwater warfare, including to the US Department of Defense.
Following a delay in DOJ approval, which Ultra Electronics disclosed in September, the companies mutually decided to terminate the acquisition on Monday, March 5, the UK firm said in a statement.
Ultra Electronics had previously reached an agreement with the DOJ on time targets for further document submission and also on the time limits for the DOJ’s discovery and decision-making after the department sought additional information under the Hart-Scott-Rodino Antitrust Improvements Act.
During the review of the proposed merger by the DOJ, the United States Navy expressed the view that instead of the parties proceeding with the merger, each of Sparton and Ultra should enhance its ability to independently develop, produce and sell sonobuoys and over time work toward the elimination of their use of Sparton’s and Ultra’s ERAPSCO joint venture for such activities.
Full Content: Reuters
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