The merger of Lockheed and Martin Marietta in 1994 means that together they will do about 60% of their total business in 1994 with the Pentagon. It makes them the sole suppliers of a range of important technologies which are vital to American defence.
The EEC/EU examines in excess of 60 notifications for mergers each year pursuant to the EEC/EU Merger Regulation. In all these cases the Commission adapts a substantiated decision by analysing the relevant product and geographic reference markets, as well as the impact of the operation on competition.
2. Mergers are probably the way to go as defence procurement continues to plunge. Consolidation will preserve a strong defence industry rather than leaving military needs to an array of shaky companies whose survival is in question. In this way mergers allow the nation to maintain industries whose continuation is in the national interest.
2. The social price to be paid in any merger is loss of competition that can yield better products at lower cost.