General Dynamics to Acquire Newport News for $2.1 Billion

General Dynamics (GD Quote) said it has agreed to buy Newport News Shipbuilding (NNS Quote) for $2.1 billion in cash, a merger that would create the sole maker of U.S. Navy aircraft carriers and submarines.

Under the terms of the deal, defense contractor General Dynamics will pay $67.50 for each Newport News share outstanding, which is a 23% premium over the stock's Tuesday closing price of $55.05. General Dynamics will also assume about $500 million of the company's debt. The companies expect to close the transaction in the third quarter, providing regulators approve the deal. ...