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 abandoned its $4.4 billion bid to acquire Aerojet Rocketdyne, a manufacturer of rocket engines and spacecraft propulsion.
The decision follows a lawsuit filed by the Federal Trade Commission (FTC) to block the deal, which alleged that the acquisition would harm rival defense contractors and further consolidate critical national security markets.
The FTC's concern stemmed from Aerojet being one of only two major rocket motor providers in the U.S., with the other having been acquired by Northrop Grumman in 2018.

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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.