CLEVELAND (AP) — Shareholders of TRW Inc. on Wednesday approved the $7.8 billion sale of the 101-year-old company to defense giant Northrop Grumman Corp., which prizes TRW's space and defense technologies.
Northrop shareholders were expected to vote later Wednesday in Los Angeles on the deal.
A spokesman for TRW, which employs about 400 people in Utah, said he did not have the vote count but said TRW shareholders had approved.
The votes came a day after Northrop announced an agreement with the Justice Department that the merger will not impede fair and open competition related to electronics in spacecraft.
"This is a real win for TRW's shareholders, our thousands of employees worldwide and for our valued customers," said TRW Chairman Philip A. Odeen.
"Together with TRW, Northrop Grumman will be a highly competitive organization and well-positioned in each of the fastest growing sectors of the defense industry," he said.
On July 1, Northrop announced its sweetened offer to buy TRW for about $7.8 billion in stock. It would also assume about $4 billion in TRW debt.
The European Union antitrust authority approved the transaction Oct. 16.
Northrop said it would pay $60 a share in stock for each TRW share, or 27 percent more than it had initially offered in February.
Northrop said Tuesday that the exact exchange ratio will be determined based on closing prices of its common stock for five consecutive trading days ending on the second trading day before the closing of the merger.
TRW said in a statement that it would be 0.5357 Northrop shares for each TRW share.