The US Department of Justice (DoJ) has approved the proposed $5bn merger of Alliant Techsystems’ (ATK) Aerospace and Defense operations with Orbital.

The companies have been informed by the US Federal Trade Commission that the Hart-Scott-Rodino waiting period for the transaction has been terminated effective 4 December.

ATK and Orbital have signed a deal for the transaction in April this year.

"ATK Aerospace and Defense groups will be combined with Orbital to create a new company called Orbital ATK."

Under the deal, ATK Aerospace and Defense groups will be combined with Orbital to create a new company called Orbital ATK.

The combined company will have Orbital’s small and medium-class satellite and launch vehicle portfolio and ATK’s rocket propulsion, composite structures and space power systems. It will have a workforce of 13,000.

It is estimated to have annual revenues of around $4.5bn, with more than $575m in EBITDA based on fiscal 2013 results.

Orbital ATK will offer space launch vehicles and propulsion systems, tactical missiles and defence electronics, satellites and space systems, armament systems and ammunition, and commercial and military aircraft structures and related components for the US and international markets.

As part of the deal, ATK will spin-off its Sporting Group business to its shareholders as a newly formed company called Vista Outdoor.

The transaction is subject to approval of ATK and Orbital stockholders at meetings to be held in January next year.

Subject to certain closing conditions, the companies expect to conclude the transaction in February 2015.

Defence Technology