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Lockheed Martin has withdrawn its $4.4 billion bid to acquire Aerojet Rocketdyne after the Federal Trade Commission (FTC) sued to block the deal.
The FTC opposed the acquisition, alleging it would grant Lockheed undue control over a critical supplier, thereby harming rival defense contractors and consolidating markets vital for national security.
Lockheed's CEO stated that the FTC's lawsuit created too much downside for shareholders, leading to the decision to abandon the deal, while Aerojet will now focus on its independent growth.

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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.