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Lockheed Wants Pentagon to Help Pay Its Costs to Absorb Sikorsky

  • Defense agencies weigh request for $212 million to restructure
  • Rationale questioned in a test of merger-related issues
Kentucky Army National Guardsmen wait on board a Sikorsky Aircraft Corp. UH-60 Blackhawk helicopter at the Kentucky State Police Cannabis Suppression Branch headquarters in London, Kentucky, U.S., on Monday, Sept. 14, 2015. Funded by federal grant money, the Kentucky State Troopers and Kentucky Army National Guard work together to enforce marijuana laws including destroying illegal grow operations throughout the state.

Photographer: Luke Sharrett/Bloomberg

Lockheed Martin Corp. is asking the Pentagon for $212 million toward restructuring costs for its $9 billion acquisition of Sikorsky Aircraft, saying the purchase will save taxpayers $8 in efficiencies for every $1 spent, as a defense agency questions whether the deal is eligible.

Defense Department agencies are auditing the claim, which would be applied to contracts with Lockheed’s Rotary and Mission Systems unit over the next five years. Lockheed, the biggest U.S. government contractor, acquired helicopter maker Sikorsky from United Technologies Corp. in 2015.