DoD to stop some industry mergers

The Department of Defense is trying to stop mergers among the nation’s largest weapons contractors.

The consolidation efforts come as defense contractors prepare for cuts in defense spending.

Ashton Carter, undersecretary of defense for acquisition, technology, and logistics, says he expects the defense industry to go through a period of profound change as it adjusts to a new era of less spending.

According to the National Journal, Carter says on occasion DoD will intervene by blocking a transaction deemed excessively focused on the short term, and if the long-term risk analysis was poorly-executed.

This story is part of Federal News Radio’s daily DoD Report. For more defense news, click here.

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