FTC lawsuit cripples Lockheed bid for Aerojet
Aerojet Rocketdyne is involved in multiple DoD programmes such as the Ground-Based Midcourse Defense system (pictured). (Photo: Aerojet Rocketdyne)
Lockheed Martin has officially withdrawn its bid to buy missile propulsion systems specialist Aerojet Rocketdyne Holdings.
Lockheed Martin on 14 February admitted defeat in its attempted $4.4 billion acquisition of Aerojet Rocketdyne Holdings.
‘The decision to terminate the agreement follows the US Federal Trade Commission's (FTC) lawsuit filed late last month seeking a preliminary injunction to block the acquisition,’ Lockheed Martin announced.
‘Our planned acquisition of Aerojet Rocketdyne would have benefitted the entire industry through greater efficiency, speed, and significant cost reductions for the US government,’ said Lockheed Martin chairman, president and CEO James Taiclet. ‘However, we determined that in light of the FTC's actions, terminating the transaction is in the best interest of our stakeholders.’
Northrop Grumman is the only rival to Aerojet in meeting DoD requirements to supply solid-fuel rocket motors for missile systems, hypersonic cruise missiles and supersonic combustion ramjets.
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