Lockheed-Sikorsky deal could close by late October: sources

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WASHINGTON Lockheed Martin Corp's (LMT.N) $9 billion purchase of Sikorsky Aircraft from United Technologies Corp (UTX.N) could close by late October or early November, well before the initial year-end target, three sources familiar with the matter said on Wednesday.

Lockheed announced last month that officials in the United States, South Korea and Japan had approved the deal, but it was waiting for other regulatory approvals.

Regulatory approvals from China and the European Union are expected next week, according to two of the sources, who all said they were not authorized to speak publicly.

"The momentum is picking up," said one of the sources. "The deal should close by late October or early November."

When it announced the deal on July 20, Lockheed said it did not anticipate major hurdles, and expected to close the transaction by late in the fourth quarter of 2015 or early 2016.

The acquisition will be Lockheed's largest since it acquired Loral Corp's defense electronics business for $9.1 billion in 1996. It will open key foreign markets for Lockheed, which has annual revenues of $45 billion, and already dwarfs its nearest competitors, the defense businesses of Boeing Co (BA.N) and Northrop Grumman Corp (NOC.N).

Lockheed is also reviewing the sale or spinoff of $6 billion in businesses in its Information Systems & Government Services and Missiles and Fire Control units.

Reuters reported earlier this month that Lockheed is exploring merging some of those businesses, with a value of about $4 billion, with another government services contractor, a move that could generate an estimated $2 billion windfall for Lockheed.

(Reporting by Andrea Shalal; Editing by Bernard Orr)