FTC Gives OK To Boeing, Lockheed JV
Lockheed Martin confirmed to Aero-News Tuesday that United
Launch Alliance, L.L.C. (ULA), its joint venture with the Boeing,
had received anti-trust clearance from the Federal Trade Commission
(FTC). The clearance is subject to compliance with a consent order
that both parties have approved, and which upon closing of the
transaction will govern certain activities of ULA, Lockheed Martin
and Boeing.
The ULA partnership combines the production, engineering, test
and launch operations associated with US government launches of
Boeing Delta and Lockheed Martin Atlas rockets. The purpose for
combining the Atlas and Delta operations is to reduce the cost of
meeting the national security and civil expendable launch vehicle
needs of the United States. ULA is to be structured as a 50-50
joint venture between Boeing and Lockheed Martin.
The action by the FTC will allow Boeing and Lockheed Martin to
finalize closing documents and work toward setting a closing
date.
The ULA venture was
first announced on May 2, 2005. As Aero-News reported earlier this
year, Lockheed Martin CFO Chris Kubasik dropped a
bombshell in April when he revealed that the company's board would
review the business case for the proposed partnership. There was
also speculation the board would decide to spike the entire
deal.
Kubasik's announcement came as Lockheed became increasingly
frustrated with the antitrust review -- as well as concessions
required for the deal to move forward, such as limits on profit
margins and investment levels. Those concerns have been addressed
in the agreement.
Upon closing, Michael Gass, vice president and general manager
of Lockheed Martin Space Transportation, will become ULA president
and CEO. Dan Collins, vice president of Boeing Expendable Launch
Systems, will serve as chief operating officer. These leaders will
report to a six-member board of directors, each company appointing
three directors.
ULA headquarters will be in Denver, CO with most engineering and
administrative activities consolidated at Lockheed Martin's Space
Systems Company facilities. Major assembly and integration
operations will be located primarily at Boeing's manufacturing and
assembly facility in Decatur, AL.
As part of the joint venture, the companies' launch facilities
at Cape Canaveral Air Force Station in Florida and Vandenberg Air
Force Base in California will provide flexibility for meeting
launch requirements on East and West coasts. ULA is expected to
have about 3800 employees at sites in Colorado, Alabama, Florida,
California and Texas.
Following the closing of ULA, Boeing and Lockheed Martin have
agreed to dismiss all civil litigation against each other related
to a previous competition for launches under the Air Force EELV
program.
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