The Justice Department today said it is requiring Harris to divest its night vision business for its merger with L3 Technologies to proceed.
In April, Harris announced it has agreed to sell its night vision business to Elbit Systems of America, a deal the company said was part of "moving proactively."
A Harris spokesman and an L3 spokeswoman both declined to comment.
In today's statement, the Justice Department said that "without the divestiture, the proposed acquisition would eliminate competition between the only two suppliers of U.S. military-grade image intensifier tubes, which are the key component in night-vision devices such as goggles and weapon sights purchased by the Department of Defense."
"The Justice Department's Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed merger," the statement added. "At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit."
DOJ said its complaint alleges "competition between Harris and L3 has resulted in lower prices, higher quality, and shorter delivery times and has fostered innovation that has led to the development of image intensifier tubes with higher sensitivity and resolution."
As a result, "the combination of Harris and L3 would leave the DOD without a competitive alternative for this critical input and likely result in higher prices, less favorable contract terms, and reduced research and development efforts."
DOJ noted that Harris must divest its entire night vision business, including its manufacturing facility in Roanoke, VA, "to an acquirer approved by the United States."