{"id":57974,"date":"2017-10-12T18:02:57","date_gmt":"2017-10-12T18:02:57","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2017\/10\/12\/lord-neutral-on-recent-merger-and-acquisition-activity\/"},"modified":"2026-08-08T00:16:44","modified_gmt":"2026-08-08T00:16:44","slug":"lord-neutral-on-recent-merger-and-acquisition-activity","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/digital-show-dailies\/ausa-digital-show-dailies\/2017\/10\/12\/lord-neutral-on-recent-merger-and-acquisition-activity\/","title":{"rendered":"Lord neutral on recent merger and acquisition activity"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2013 The Pentagon\u2019s top acquisition official is remaining neutral following a trio of major defense merger and acquisition announcements. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ellen Lord, the undersecretary of defense for acquisition, technology and logistics, told reporters at the 2017 AUSA Conference that her office is reviewing the proposed changes but indicated she had not made up her mind on whether to support or oppose the M&amp;A activity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re working on those. We\u2019ve gotten a lot of good inputs and we\u2019re looking at\u201d the facts, said Lord, who served as CEO of Textron Systems prior to her nomination. \u201cI\u2019m looking at where we are today and what we need as a country and going from there.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The defense industry has seen a series of major M&amp;A moves since the start of September, starting with the announcement that United Technologies, the 12th largest defense company on the annual <a href=\"http:\/\/people.defensenews.com\/top-100\/\">Defense News Top 100 list<\/a>, plans to purchase Rockwell Collins (40th) for $30 billion.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2017\/10\/05\/ma-wave-continues-as-boeing-announces-acquisition-of-aurora\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"182\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635861999421191408-gettyimages-84516949jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">M&amp;A wave continues: Boeing announces acquisition of Aurora<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Aurora, which specializes in autonomy and unmanned aircraft, is a natural fit for Boeing, which will be able to profit off the smaller company\u2019s expertise in both its commercial and defense business.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Shortly after, Northrop Grumman (5th largest) announced it will acquire Orbital ATK (31st) for just under $9.2 billion. And in October, Boeing (2nd) agreed to purchase Aurora Flight Sciences, which is not on the Top 100 but will help boost Boeing\u2019s unmanned systems sector.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lord said there was no real time table for when she would issue a recommendation on whether the Pentagon backs such moves.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Frank Kendall, the previous AT&amp;L chief, famously opposed Lockheed Martin\u2019s 2015 acquisition of Sikorsky Helicopters, and at one time <a href=\"https:\/\/www.defensenews.com\/pentagon\/2016\/05\/10\/kendall-drops-legislative-merger-restriction-push\/\">pursued legislation<\/a> on the Hill that would give his office more oversight power on potential mergers. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kendall\u2019s concerns then were about the health of the supply chain, telling reporters this in 2015: \u201cWith size comes power, and the department\u2019s experience with large defense contractors is that they are not hesitant to use this power for corporate advantage.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Asked about the health of the industrial base, Lord pointed out that there is an <a href=\"https:\/\/www.defensenews.com\/home\/2017\/07\/24\/navarro-trump-ordered-us-defense-industrial-base-study-to-help-rebuild-military\/\">executive order from the White House<\/a> to study just that issue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s great because we\u2019re leveraging a lot of great data [the Department of Commerce] has and we\u2019re bringing a lot of other government agencies and entities,\u201d she said. \u201cSo that will provide a platform for what we have now, and then we have to juxtapose that with where we\u2019re trying to go.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But, \u201cI think with these mergers and acquisitions, you can\u2019t really make a blanket statement. You have to take them one at a time because they each stand on their own merits,\u201d she added.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Pentagon\u2019s top acquisition official is remaining neutral following a trio of major defense merger and acquisition 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