Weather Forecast and latest conditions. Your guide to the 'Net, gadgets, games and more. General Dynamics two years ago was unsuccessful in an unsolicited bid for Newport News. But this time, a merger appeals to Newport News in large part because of the recent takeover of Litton Industries by Grumman-Northrup. That deal left Newport News as a relatively small player competing against the much bigger shipbuilders Grumman-Northrup and General Dynamics.
Federal regulators are likely to approve the merger for several reasons.
Where 20 years ago some 20 prime contractors would bid on defense work, that number is down to a half dozen. Both Newport News Chairman William Fricks and his counterpart at General Dynamics, Nicholas Chabraja, insist no jobs will be lost due to the merger. That seems likely because the Navy has said it wants to maintain two nuclear-certified shipyards able to build nuclear submarines. Both the Groton and Newport News, Va., shipyards meet that criterion. Also worth noting is the need for Groton to maintain a minimal level of nuclear activity to keep its nuclear certification.