General Dynamics in shipbuilding merger

Wednesday, April 25, 2001 | 10:56 a.m.

NEWPORT NEWS, Va. -- General Dynamics Corp. plans to acquire Newport News Shipbuilding Inc. for $2.1 billion in its second attempt in two years to acquire its shipbuilding rival and become the sole manufacturer of Navy aircraft carriers and submarines.

The deal announced today would make General Dynamics a shipbuilding powerhouse, giving it control over the manufacture and maintenance of all the U.S. military's nuclear-powered ships, in addition to a strong position building Navy destroyers, auxiliary ships and commercial oil tankers.

If approved by regulators, General Dynamics' deal for Newport News would make it a stronger rival to Northrop Grumman Corp., which recently acquired the only other major U.S. shipmaker, Litton Industries Inc.

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