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DOJ antitrust review of TransDigm-Stellant merger faces Pentagon pressure
Defense Department officials worry the $960 million deal could leave the Navy and Air Force reliant on a sole supplier and push up prices for critical radar components, according to people familiar with the talks.
Insurance Journal reports that the Justice Department’s antitrust staff has prepared a lawsuit challenging aerospace company TransDigm Group Inc.’s planned $960 million acquisition of Stellant Systems Inc., a deal announced in late December.
People familiar with the matter say DOJ leadership has not yet signed off on filing, with Justice Department officials in settlement talks that reflect the Trump administration’s preference for cutting deals rather than suing. The decision hinges in large part on Stanley Woodward, the No. 3 DOJ official, who has advocated a comparatively hands off approach to antitrust enforcement.
The Defense Department has raised serious concerns about the transaction, the people said. Pentagon officials are worried the merger could tie the military to a sole supplier for certain radar components used by the Navy and Air Force, and lead to price increases for critical parts.
The TransDigm-Stellant deal would be among the mergers the antitrust division has recommended challenging, people familiar with the matter said, and it would require Woodward’s approval. A decision on whether to sue could come in the coming days, and spokespeople for both companies did not respond to requests for comment.