TransDigm Group has abandoned its attempt to acquire rival defense and industrial component manufacturer Stellant Systems. TransDigm and Stellant compete, in addition to industrial products, to supply and repair components used in radar systems for the U.S. Navy’s Aegis Combat System and the U.S. Air Force’s F-16 fighter jets. The acquisition would have left the Department of War with a single source for critical products, increasing supply chain risks and removing the benefits of competition.
TransDigm abandoned the transaction after the Justice Department informed the parties that it would file a lawsuit in federal court to block the transaction.
“This Justice Department will rigorously investigate and challenge mergers that create monopolies and harm competition. Our decision to put a stop to this deal preserved critical competition that protects American taxpayers and warfighters,” said Associate Attorney General Stanley Woodward. “We are grateful to our War Department partners who were crucial to this investigation.”
“The Department of War is committed to building the Arsenal of Freedom, which requires resilient supply chains and competition,” said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment. “Maintaining a robust, diverse, and competitive defense industrial base is vital to preventing single-source vulnerabilities and ensuring our warfighters are equipped with superior capabilities at the best value to the American taxpayer.”
TransDigm Group Incorporated is headquartered in Cleveland, Ohio. Stellant Systems Inc. is headquartered in Torrance, California.
