Lockheed Martin Pulls Back Aerojet Rocketdyne Bid Following FTC Lawsuit

The agency contends the defense contractor could use its position to harm its rivals.

Monday, February 14, 2022 at 01:12 PM ET

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The Federal Trade Commission sued Lockheed Martin to block the company's $4.4 billion deal to buy Aerojet Rocketdyne. [File Photo: Shutterstock]

Key Takeaways:

Lockheed Martin has withdrawn its $4.4 billion bid to acquire Aerojet Rocketdyne.
The decision followed a lawsuit by the Federal Trade Commission (FTC) to block the deal, citing concerns about market consolidation and potential harm to competing defense contractors.
Lockheed's CEO stated that the FTC's legal challenge created too much downside risk for shareholders, leading to the deal's abandonment.
Aerojet Rocketdyne will now operate independently, focusing on space exploration and defense growth markets.

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Lockheed Martin (NYSE: LMT) has pulled back its bid to buy Aerojet Rocketdyne (NYSE: AJRD), a manufacturer of rocket engines and spacecraft propulsion, Lockheed announced late Sunday.

The announcement comes after the Federal Trade Commission sued Lockheed to block the $4.4 billion deal, alleging that if the agreement proceeded, Lockheed could’ve used its control of Aerojet to harm rival defense contractors, and further consolidate multiple markets critical to national security and defense.