Northrop Grumman purchase of Orbital ATK approved
Capitalism in space: Northrop Grumman’s acquisition of Orbital ATK has been approved by the Federal Trade Commission.
With this purchase, the name Orbital ATK will recede into history. This division of Northrop Grumman will now be called Northrop Grumman Innovation Systems. Here at Behind the Black I will simple call it Northrop Grumman.
The FTC ruling carried with it one caveat:
As a condition for the approval of the merger, the company will have to supply solid rocket motors “on a non-discriminatory basis under specified circumstances,” the FTC ruled.
Ensuring competition in the solid rocket motors industry is a key issue for the Defense Department because only two manufacturers remain in the business, Orbital ATK and Aerojet Rocketdyne. The Air Force plans to acquire a new strategic intercontinental ballistic missile, the so-called Ground Based Strategic Deterrent, with Northrop Grumman and Boeing competing for the award. The intent was for both Orbital ATK and Aerojet to supply both prime contractors. The FTC decision requires Northrop Grumman to separate its solid rocket motors business with a firewall so it can continue to support Boeing.
It will be up to the Defense Department to ensure compliance with the firewall mandate.
It is unclear from the press report what this firewall accomplishes. It sounds like there was fear that Northrop Grumman would not have sold its solid rocket boosters to competitor Boeing, but I don’t see that happening. This acquisition was designed to put Northrop Grumman back in the rocket business just as that business is booming. Part of that business is selling solid rockets.
Either way, the company that David Thompson started in the early 1980s to challenge the big space companies, Orbital Sciences, has now completely vanished into one of those big space companies.
Readers!
Every February I run a fund-raising drive during my birthday month. This year I celebrate my 72nd birthday, and hope and plan to continue writing and posting on Behind the Black for as long as I am able.
I hope my readers will support this effort. As I did in my November fund-raising drive, I am offering autographed copies of my books for large donations. Donate $250 and you can have a choice of the hardback of either Genesis: the Story of Apollo 8 or Conscious Choice: The origins of slavery in America and why it matters today and for our future in outer space. Donate $200 and you can get an autographed paperback copy of either. IMPORTANT! If you donate enough to get a book, please email me separately to tell me which book you want and the address to mail it to.
Please consider supporting my work here at Behind the Black. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
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4. Donate by check, payable to Robert Zimmerman and mailed to
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Capitalism in space: Northrop Grumman’s acquisition of Orbital ATK has been approved by the Federal Trade Commission.
With this purchase, the name Orbital ATK will recede into history. This division of Northrop Grumman will now be called Northrop Grumman Innovation Systems. Here at Behind the Black I will simple call it Northrop Grumman.
The FTC ruling carried with it one caveat:
As a condition for the approval of the merger, the company will have to supply solid rocket motors “on a non-discriminatory basis under specified circumstances,” the FTC ruled.
Ensuring competition in the solid rocket motors industry is a key issue for the Defense Department because only two manufacturers remain in the business, Orbital ATK and Aerojet Rocketdyne. The Air Force plans to acquire a new strategic intercontinental ballistic missile, the so-called Ground Based Strategic Deterrent, with Northrop Grumman and Boeing competing for the award. The intent was for both Orbital ATK and Aerojet to supply both prime contractors. The FTC decision requires Northrop Grumman to separate its solid rocket motors business with a firewall so it can continue to support Boeing.
It will be up to the Defense Department to ensure compliance with the firewall mandate.
It is unclear from the press report what this firewall accomplishes. It sounds like there was fear that Northrop Grumman would not have sold its solid rocket boosters to competitor Boeing, but I don’t see that happening. This acquisition was designed to put Northrop Grumman back in the rocket business just as that business is booming. Part of that business is selling solid rockets.
Either way, the company that David Thompson started in the early 1980s to challenge the big space companies, Orbital Sciences, has now completely vanished into one of those big space companies.
Readers!
Every February I run a fund-raising drive during my birthday month. This year I celebrate my 72nd birthday, and hope and plan to continue writing and posting on Behind the Black for as long as I am able.
I hope my readers will support this effort. As I did in my November fund-raising drive, I am offering autographed copies of my books for large donations. Donate $250 and you can have a choice of the hardback of either Genesis: the Story of Apollo 8 or Conscious Choice: The origins of slavery in America and why it matters today and for our future in outer space. Donate $200 and you can get an autographed paperback copy of either. IMPORTANT! If you donate enough to get a book, please email me separately to tell me which book you want and the address to mail it to.
Please consider supporting my work here at Behind the Black. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
“Innovation Systems” has got to be the most boring and soulless name they could apply. Sheesh!