U.S. Department Of Defense Approves Boeing Purchase Of Hughes

Boeing Co. won approval from the U.S. Defense Department to buy Hughes Electronics Corp.'s satellite-making business, a key regulatory endorsement. The Pentagon notified the U.S. Federal Trade Commission (FTC) that it had no objections to the US$3.75 billion transaction. Pentagon spokesman Bryan Whitman said, "The [Defense] Department has informed the FTC that it would not object to this proposed merger so long as certain steps are taken to preserve competition in the market." It is unlikely Boeing will have to divest any businesses to gain full regulatory clearance. Regulators at the FTC and the European Commission are continuing to review the purchase to ensure that Boeing doesn't use Hughes's leading position as the world's largest satellite manufacturer to direct customers to its own launch vehicles.

Boeing would absorb about 9,000 Hughes employees, bringing its total California work force to about 46,000 becoming the top private employer in California.