Press Release

Launchers: Commission clears the creation of United Launch Alliance, a space launch services joint venture between Lockheed Martin and Boeing

By SpaceRef Editor
August 18, 2005
Filed under , ,
Launchers: Commission clears the creation of United Launch Alliance, a space launch services joint venture between Lockheed Martin and Boeing
http://images.spaceref.com/news/comm.launch.jpg

The European Commission has cleared under the EU Merger Regulation the proposed United Launch Alliance (“ULA”) joint venture between the US Defence and Space contractors Lockheed Martin and Boeing. The investigation has shown that the proposed transaction will not significantly impede effective competition in the European Union.

Both Boeing and Lockheed provide space launch services to governmental and commercial customers. Lockheed is active on the market with its Atlas family of launch vehicles as well as with Proton, a launcher produced in a joint venture with Russian partners. Boeing offers the Delta launch vehicles as well as launchers produced by Sea Launch, also a joint venture with Russian partners. Both Boeing and Lockheed also produce and market satellites.

ULA, structured as a 50-50 joint venture, will combine the production, engineering, test and launch operations associated with U.S. government launches of Boeing’s Delta and Lockheed’s Atlas rockets. ULA is exclusively intended to serve the US government market for launch services. The JV therefore does not have a direct impact on customers in the EEA.

Lockheed Martin’s International Launch Services (including Proton) and Boeing Launch Services (including Sea Launch) are not included in the joint venture. However, both Lockheed Martin and Boeing will remain active in the commercial market separately, and ULA will supply launchers to its parents for commercial sales. The Commission therefore has investigated whether the creation of ULA could have the effect of a coordination of Boeing and Lockheed on the commercial market. However, it concluded that ULA does not increase the risk of coordinated behaviour compared to the situation pre-merger.

In view of the above, the Commission has decided not to oppose the operation. In the investigation, the Commission sought and considered the views of the major relevant players in the European Space Industry. The Commission will continue to monitor market developments and any further consolidation of the activities of the parties involved in this concentration. Furthermore, it will continue to contribute through the relevant policies and instruments at its disposal to ensuring the competitiveness of this key industry in Europe.

SpaceRef staff editor.