Boeing not ruling out merger with rival

Boeing is "actively" looking at potential acquisition opportunities in response to a changing security environment and will not rule out a merger with another large defense contractor, Boeing's head of defense said on Tuesday. 

Speaking at the Reuters Aerospace and Defense Summit in Washington, Dennis Muilenburg said Boeing continues to look at high-growth areas such as cybersecurity, intelligence and surveillance and unmanned systems for potential deals and will make targeted acquisitions in those areas.

"We continue to see acquisitions as an opportunity area for us. It's one of the tools that we use to grow," said Muilenburg, chief executive of Boeing''s defense, space and security division.

Asked if Boeing would consider a large-scale merger with a major defense contractor, Muilenburg said: "I''m not going to rule out or rule in any options."

"Obviously as we see defense budget pressure, that does at times lead to potential consolidation," he said.                                           

Boeing bought defense manufacturer Argon ST Inc for about $775 million in June to beef up its capabilities in sensors, communication technologies and information management.

"As we look at the market place we''ve identified growth areas. We continue to actively look at opportunities there," he said.