EU Clears Northrop Purchase of Litton

The European Union Commission gave antitrust clearance to Northrop Grumman Corp.’s purchase of Litton Industries Inc., a deal that could create one of the largest defense contractors in the U.S. and strengthen Southern California’s position as a dominant player in military electronics. “To a large extent, the businesses of Northrop and Litton are complementary and the overlaps between their activities are very limited,� the commission said. Northrop, the fifth-largest U.S. defense contractor, announced its plan to buy Litton for $3.8 billion in December. The combined company will have $15 billion in revenue in 2001, growing to $18 billion by 2003, the companies have estimated. Company officials believe U.S. regulators will approve the deal by March 29, said Northrop Grumman spokesman Jim Taft. Los Angeles-based Northrop Grumman makes weapons systems, including radar and navigation systems. Litton Industries, based in Woodland Hills, builds nonnuclear ships for the Navy and provides advanced information technology for commercial and defense customers. On the New York Stock Exchange, Northrop Grumman shares fell 70 cents to close at $85.58, and Litton shares rose 19 cents to close at $79.64.