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Sikorsky to be sold to Lockheed Martin

 
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Sikorsky to be sold to Lockheed Martin - 7/20/2015 12:35:12 AM   
jtoatoktoe

 

Posts: 208
Joined: 10/9/2013
Status: offline 		Ads even more technology into the Lockheed family.

http://www.reuters.com/article/2015/07/19/us-sikorsky-m-a-lockheed-idUSKCN0PT0MM20150719
Post #: 1
RE: Sikorsky to be sold to Lockheed Martin - 7/20/2015 12:45:41 AM   
thewood1

 

Posts: 6529
Joined: 11/27/2005
Status: offline 		It was about the only place that could buy it. Bae was probably the only other one and that would have had a hard time getting through congress.

Even then, there will be all kinds of FTC and congressional reviews that cold scuttle it.

(in reply to jtoatoktoe)
Post #: 2
RE: Sikorsky to be sold to Lockheed Martin - 7/20/2015 12:50:35 AM   
thewood1

 

Posts: 6529
Joined: 11/27/2005
Status: offline 		I was just in the plant of a Sikorsky supplier in CT and the thought LM was the only answer.

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Post #: 3
RE: Sikorsky to be sold to Lockheed Martin - 7/20/2015 1:36:40 AM   
hellfish6


Posts: 843
Joined: 6/15/2008
Status: offline 		I'm not in favor of consolidation among defense companies. When they started merging with serious vigor in the '90s is about the time that they started becoming wildly more costly (for far fewer returns).

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Post #: 4
RE: Sikorsky to be sold to Lockheed Martin - 7/20/2015 2:44:33 AM   
thewood1

 

Posts: 6529
Joined: 11/27/2005
Status: offline 		The main issue is when the DOD budgets start getting cut, consolidation is the only way to survive until budgets grow. They are competing with government subsidized mega-companies overseas as well. Consolidation is again the main response to that.

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Post #: 5
RE: Sikorsky to be sold to Lockheed Martin - 7/20/2015 2:47:20 AM   
charlee22009

 

Posts: 72
Joined: 6/28/2015
Status: offline 		Isn't it a little late for DOD antitrust concerns...

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RE: Sikorsky to be sold to Lockheed Martin - 7/20/2015 10:35:56 AM   
thewood1

 

Posts: 6529
Joined: 11/27/2005
Status: offline 		No. There is a limit. In fact, there used to be a specific law on market sizing related to bidding. That is why Textron pulled out of the bidding.

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Post #: 7
RE: Sikorsky to be sold to Lockheed Martin - 7/21/2015 6:36:58 PM   
Brent119

 

Posts: 9
Joined: 7/21/2015
Status: offline 		Still seems strange to think of the Blackhawks as a Lockheed product. We really are down to three big mega-contractors in the U.S. Pardon me if I'm a little nostalgic.

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RE: Sikorsky to be sold to Lockheed Martin - 7/21/2015 8:29:07 PM   
thewood1

 

Posts: 6529
Joined: 11/27/2005
Status: offline 		The same consolidation happened before...Curtis or Douglas anyone?

It ebbs and flows. McDonnell sprang up as a paradigm came about in the mid-40s. It happens and then unhappens over 20-30 year cycles.

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Post #: 9
RE: Sikorsky to be sold to Lockheed Martin - 7/22/2015 11:14:56 AM   
Zaslon

 

Posts: 283
Joined: 6/14/2015
Status: offline 		Very Bad news for the free market.
Anti-trust law didn't stop the deal?


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Kids think about Iran and Amateurs think about Russia, but professionals think about China

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Post #: 10
RE: Sikorsky to be sold to Lockheed Martin - 7/22/2015 12:09:58 PM   
thewood1

 

Posts: 6529
Joined: 11/27/2005
Status: offline 		There was no consolidation in helicopter. As far as the FTC is concerned, it is just switching owners. Same number of producers in the market.

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Post #: 11
RE: Sikorsky to be sold to Lockheed Martin - 7/22/2015 12:12:32 PM   
thewood1

 

Posts: 6529
Joined: 11/27/2005
Status: offline 		Not sure I understand the free market concern. Same number of manufacturers will exist. LM owning them doesn't seem to be much different than UT owning them.

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Post #: 12
RE: Sikorsky to be sold to Lockheed Martin - 7/22/2015 3:32:55 PM   
Brent119

 

Posts: 9
Joined: 7/21/2015
Status: offline 		Compared to the "merger" of Boeing and McDonnell Douglas, this is small potatoes. Still doesn't feel quite right, but I understand it's part of the business of buying and trading business.

The longer term question is: will Lockheed try to relocate Sikorsky to a lower-cost market? Connecticut isn't cheap. What's their incentive to stay?

(in reply to Zaslon)
Post #: 13
RE: Sikorsky to be sold to Lockheed Martin - 7/22/2015 4:25:35 PM   
thewood1

 

Posts: 6529
Joined: 11/27/2005
Status: offline 		CT gives them HUGE tax breaks. And they have a very strong congressional delegation. I am not sure it would be worth it to piss CT off.

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Post #: 14
RE: Sikorsky to be sold to Lockheed Martin - 7/22/2015 10:04:20 PM   
Cheechako

 

Posts: 33
Joined: 7/10/2015
Status: offline
quote:

ORIGINAL: Zaslon

Very Bad news for the free market.
Anti-trust law didn't stop the deal?


Why would it? LM wasn't an existing helo manufacture unlike Bell or Boeing.

(in reply to Zaslon)
Post #: 15
RE: Sikorsky to be sold to Lockheed Martin - 7/23/2015 9:35:18 AM   
Zaslon

 

Posts: 283
Joined: 6/14/2015
Status: offline 		My point is a consolidation in defense industry. UT isn't mega-corporation like Boeing or Lockheed-Martin.
With this acquisition now we have 2 mega-corporations acting like a duopoly with a minor sister (Northrop-Grumman) and some minor actors UT, BaE...

The 'merge' between Boeing and McDonnell-Douglas was an epic fail.

_____________________________


Kids think about Iran and Amateurs think about Russia, but professionals think about China

(in reply to Cheechako)
Post #: 16
RE: Sikorsky to be sold to Lockheed Martin - 7/23/2015 11:26:27 AM   
thewood1

 

Posts: 6529
Joined: 11/27/2005
Status: offline 		UT is a HUGE company and does a LOT of defense work...Pratt & Whitney, Hamilton, and even Goodrich is like 50% defense.

Not sure Boeing and MD was an epic fail. It probably didn't get everything expected out of it, but the option of MD failing was worse.


(in reply to Zaslon)
Post #: 17
RE: Sikorsky to be sold to Lockheed Martin - 7/23/2015 12:21:09 PM   
Zaslon

 

Posts: 283
Joined: 6/14/2015
Status: offline 		Yeap, UT is in the same level than Boeing (total assets and employees), but the key is that UT is more diversified. Engines, A/C, lifts...

McDonnell-Douglas was gone. That's the problem (yeah I love his aircrafts). Without the merge, MD could be reestructured and again surely they would obtain green numbers again. But this is a What if...

_____________________________


Kids think about Iran and Amateurs think about Russia, but professionals think about China

(in reply to thewood1)
Post #: 18
RE: Sikorsky to be sold to Lockheed Martin - 7/23/2015 12:47:48 PM   
thewood1

 

Posts: 6529
Joined: 11/27/2005
Status: offline 		They would have restructured out of business. There commercial business was failing. They had no new DoD contracts. They would have chaptered 11 and been sold off as pieces.

As DoD contracts become more complicated and expensive, only the large survive until a new technology comes along to allow a smaller company entry.

I will also point out the all of UT's military business is actually on the block. Sk is only the start because it has no existing contracts.

(in reply to Zaslon)
Post #: 19
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