Photograph: U.S. Department of Defense

Pentagon Says Legislation Not Needed on Merger Reviews

April 12, 2016
By Tony Capaccio

(Bloomberg) — “We are withdrawing our legislative proposal,” Pentagon spokesman Mark Wright says in statement.

  • NOTE: Pentagon step follows Justice Dept-FTC statement reiterating Pentagon “is in a unique position to assess impact of potential defense industry consolidation on its ability to fulfill its mission”
    • DOJ-FTC say current review guidelines “sufficiently flexible to address DOD concerns” that further consolidations can affect national security
    • Pentagon said it “welcomed” statement
  • NOTE: Pentagon weapons buyer Frank Kendall had said proposed legislation expanded criteria for domestic merger reviews to include greater assessment of national security impact
    • Proposal was under review by other agencies
    • Kendall in late February told reporters he wasn’t sure proposal would pass Congress this year, “but I do want to move that forward”
  • Proposal would not have changed inter-agency process for reviewing mergers of U.S. and foreign companies, Wright says
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