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This Day in Georgia History

August 30, 1994

Lockheed and Martin to Merge

Lockheed Corporation and Martin Marietta Corporation announced a proposed merger involving a $10 billion stock swap. This merger of the second and third largest defense contractors would make Lockheed Martin the giant of the industry. The companies said that the Clinton Pentagon was encouraging mergers to boost efficiency as the military was down-sized. Lockheed stockholders were the big winners in the deal, as they would get 1.63 shares of the new company for each Lockheed Corp. share they held. Immediately, Lockheed stock shot up on the stock market by some $10.75 a share to $76.75, compared to a rise in Martin Marietta stock by only fifty cents to $48.75. The new company would be based in Bethesda, Maryland, the current headquarters of Martin Marietta. According to reports out of Marietta, Georgia, the merger would make little difference to the workers at the Marietta-based Lockheed Aeronautical System Group. At the time Lockheed had about eleven thousand workers in Marietta, although that number was already expected to drop eventually by about two thousand, as work was completed on various contracts. [Contributed by Dr. Tom Scott, Kennesaw State University]