FTC Suing Lockheed Martin to Block Aerojet Rocketdyne Acquisition

Michael Wildes

Tuesday, January 25, 2022 at 08:11 PM ET

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Lockheed Marton generated $1.1 billion in free cash flow during the first quarter of 2022. [File Photo: Adobe Stock]

Key Takeaways:

The Federal Trade Commission (FTC) has filed a lawsuit to block Lockheed Martin's $4.4 billion acquisition of Aerojet Rocketdyne, citing concerns over market consolidation and potential harm to rival defense contractors.
Lockheed Martin reported better-than-expected fourth-quarter and full-year 2021 earnings, with strong performance in its Aeronautics (F-35 program) and Missiles and Fire Control segments.
Despite the acquisition challenge, Lockheed Martin plans to vigorously pursue emerging technologies like hypersonics, projecting $3 billion in sales from this area by 2026.

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Lockheed Martin (NYSE:LMT) CEO Jim Taiclet told investors Tuesday during his company’s fourth-quarter earnings call that the Federal Trade Commission (FTC) has filed a lawsuit to block Lockheed’s $4.4 billion acquisition of Aerojet Rocketdyne (NYSE:AJRD), a manufacturer of rocket engines and spacecraft propulsion.

The FTC alleges that if the deal is allowed to proceed, Lockheed will use its control of Aerojet to harm rival defense contractors and further consolidate multiple markets critical to national security and defense.