Related: Aerospace ETFs Keep Flying Higher
Further fueling gains in the defense sector, Northrop Grumman (NYSE: NOC) has acquired Orbital ATK (NYSE: OA) for $7.8 billion, CBSNews reports.
NOC shares increased 2.7% Monday while OA shares surged 20.3%.
Orbital manufactures rocket motors that power missiles and designs and produces target launch vehicles used to test missile defense systems. Northrop was recently chosen by the Air Force to continue work designs for a new intercontinental ballistic missile system known as the Ground Based Strategic Deterrent program, and Northrop Chief Executive Wes Bush described Orbital’s capabilities as “very complementary,” reports Samantha Masunaga for the Los Angeles Times.
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