Rocket and missile maker sold for $7.8 billion

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Northrop Grumman has confirmed a deal to buy missiles and rocket-maker Orbital ATK, which is a value of about $7.8 billion (£5.7 billion) in cash.

Orbital has entered into contracts worth billions of dollars with both the u.s. Army and NASA.

The united states defense contractor faced just as the firing of missiles by North Korea in recent months, has drawn attention to the anti-missile defence systems.

Northrop’s offer price of $134.50 a share represents a 22% premium on Orbital’s closing price on Friday.

Shares in Orbital were up to a quarter of this year, as investors eye an increase in us defence spending.

The recovery is Northrop’s first big deal for several years, and is a starting point for its concentration of return of profits to shareholders.

His motivation may reflect the Pentagon’s efforts to rebuild the missile defense.

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Last month, Northrop won a $328m contract to develop a replacement for the Minuteman III intercontinental ballistic missile system for the US Air Force.

Northrop is also the prime contractor for the B-21 bomber, as well as the manufacturer of the Global Hawk unmanned aerial vehicle.

Monday’s deal represents further consolidation in the defence sector.

Earlier this month, the aerospace supplier United Technologies said it was buying the avionics and interiors maker Rockwell Collins in a$ 30 billion deal – the largest in the history of the area.

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During this time, Qatar, said it planned to buy 24 Typhoon fighter planes from BAE Systems in a deal thought to be worth around £ 1 billion.

The case has sent shares in BAE Systems, which will make the jet at its Lancashire plant, up nearly 3 per cent to 613p.

The agreement was signed Sunday during a visit to Qatar by the Secretary of Defence, Sir Michael Fallon, who said he has marked the UK’s first major defense contract with the Gulf state.