Lockheed, Northrop File Merger Response

Lockheed Martin Corp. and Northrop Grumman Corp. told the Justice Department that their proposed $8.3-billion merger would increase rather than restrict competition in the defense industry and would create savings benefiting the government. The answer to a complaint by the Justice Department, which is seeking to block the merger, was filed jointly in Washington. The companies said their planned combination would create a stronger competitor to Boeing Co., which is seven times larger than Lockheed in aircraft and twice as large in military aircraft. In defense electronics, Raytheon Co. is twice as large as Lockheed Martin and would still be bigger after a Lockheed-Northrop merger, but the latter “will be better positioned to compete against Raytheon,” the filing said.