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Boeing said to clear FTC
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July 1, 1997: 7:14 a.m. ET
$14-billion-merger with McDonnell Douglas gets FTC nod, report says
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NEW YORK (CNNfn) - Boeing Co.'s proposed $14 billion merger with rival McDonnell Douglas Corp. is reportedly expected to clear key federal regulators.
The Federal Trade Commission has until midnight to block the aerospace mega-merger; however, the Washington Post reported on Tuesday that the agency has no plans to do so.
The decision came down to a determination by the FTC staff that McDonnell Douglas had ceased to be a competitive factor in the market for commercial jets, according to knowledgeable sources. The conclusion is that the merger would not result in any substantial lessening of competition for either military or civilian aircraft.
With the clearance, the agency's five-member commission concludes one of the most extensive investigations in its history. The combination will create the world's largest aerospace firm with more than 200,000 employees and annual sales projected at $40 billion.
Still, the merger is subject to approval by European regulators, who have already detailed a lengthy list of objections. Negotiations between those regulators and Boeing representatives are continuing as a Friday deadline approaches for a vote by the antitrust advisory panel of the European Union in Brussels.
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