Posted: Wed, Oct 16, 2002, 8:57 PM ET (0057 GMT)
The European Union has granted Northrop approval to merge with TRW, a key regulatory step towards completing the merger. The European Commission announced Wednesday that it believed that a merger of the two aerospace companies would have no adverse affect, given the number of European competitors the merged company would have. Northrop is still waiting for a ruling from the US Justice Department on the merger. Northrop announced Wednesday that it believes it is still on track for completing the merger by the end of this year, perhaps in late November or early December; the company said in a statement that it would give the Justice Department 10 days' warning before calling a shareholder's meeting to complete the merger. Some US companies, including Lockheed Martin, have expressed reservations about the merger since it could limit their access to sensors developed by the merged company. The announcement of the EU approval came the same day that TRW issued its third quarter financial statement, showing a 42 percent increase in earnings over the same quarter a year ago. The company credited several space contract awards, including the NPOESS weather satellite system, SBIRS Low missile warning system, and the James Webb Space Telescope, for the increase.

Related Links:

•  Reuters article about EU approval
•  Northrop Grumman press release about merger
•  TRW press release about earnings