FTC Delays Decision on Lockheed Martin’s $4.4 Billion Acquisition
- January 12, 2022
- Posted by: Quatro Strategies
- Category: Defense
The U.S. Federal Trade Commission (FTC), which supervises mergers to ensure they comply with antitrust law, has delayed its voting for Lockheed Martin’s $4.4 billion acquisition of Aerojet Rocketdyne for up to two weeks. The vote initially had been scheduled for this week, but FTC needs more time to evaluate the terms.
Critics of the deal, especially Lockheed’s competitors, have argued that it would give Lockheed a dominant market position in rocket motors, an important piece of the missile industry. It is used in a range of products from defensive missile systems to Stinger missiles. Missile maker Raytheon has been particularly critical of the acquisition.
The $4.4 billion deal announced in late 2020 is expected to reshape the competitive landscape.
Aerojet develops and manufactures liquid and solid rocket propulsion, air-breathing hypersonic engines, and electric power and propulsion for space, defense, civil and commercial applications. Most of the biggest U.S. defense corporations are among Aerojet’s customers, including Boeing, Raytheon and Lockheed Martin.
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