US: DigitalGlobe said that the Department of Justice, US, is seeking further information about its planned acquisition of GeoEye. The satellite and aerial image company announced in July that it is buying rival satellite company GeoEye in a cash and stock deal worth about USD 453 million.
DigitalGlobe, whose images are used for defense, intelligence, mapping and environmental monitoring, said the deal creates a more efficient and diversified company better positioned to thrive as the Pentagon makes severe budget cuts.
The Department of Justice has sent two requests to DigitalGlobe for information about the deal, which the company says are a standard part of the regulatory process. Their requests extend the waiting period under certain antitrust laws that prohibit the deal from closing until the information is provided by the company, or until the federal government lifts the waiting period.
DigitalGlobe said it expects to promptly respond to the requests and to continue working cooperatively with the Department of Justice as it conducts its review of the proposed combination. It still expects the deal to close in this year”s fourth quarter or next year”s first quarter.
The companies had been eying a deal for months to combine the two companies before securing an agreement. DigitalGlobe said in May that it rejected an offer from GeoEye worth USD 792 million and revealed that it had already bid for GeoEye.
Source: CBS News