Schaumburg, Illinois-based military electronics manufacturer Sparton (NYSE: SPA) and U.K.-based defense contractor Ultra Electronics have decided to abandon their $234 million merger agreement because of antitrust concerns from the Justice Department.
Sparton said Monday it plans to resume negotiations with parties that previously showed interest in an acquisition deal and can immediately execute such a transaction.
The U.S. Navy suggested that Sparton and Ultra should independently build and market their sonobuoys and strive to end their use of ERAPSCO for such efforts.
ERAPSCO — a joint venture of Sparton and Ultra Electronics — has been producing sonobuoys and transducers for the Navy since 1987.
Ultra agreed to buy Sparton in July 2017 through a stock transaction valued at $23.50 per share.