U.S. Allows Raytheon to Buy TI Unit

Raytheon Co. received government permission to acquire part of Texas Instruments in exchange for an agreement to sell a unit that produces a key component for defense radar systems. The $2.9-billion merger as originally proposed would have raised prices paid by the Defense Department, and ultimately by taxpayers, for equipment that will be critical for the next generation of radar systems, the Justice Department said. Raytheon had asked permission to buy TI’s defense systems and electronics unit, which includes a business that produces components for advanced military radars. Under the settlement, Raytheon will sell Texas Instruments’ Lewisville, Texas-based production facilities for high-power monolithic microwave integrated circuits, or MMICs. Justice Department and Defense Department officials now will turn their attention to an even more contentious merger proposal: Raytheon’s planned $9.5-billion acquisition of General Motors Corp.’s Hughes Electronics business. The government is expected to scrutinize whether the new company would have too much control over the market for air-to-air missiles and high-tech sensors. Raytheon shares rose 44 cents to close at $53, and Texas Instruments added $1.625 to close at $88. Both trade on the New York Stock Exchange.