US FTC blocks Lockheed Martin $4.4 billion acquisition
The acquisition of Aerojet could affect the supply chain of missiles, such as this 34" common hypersonic missile pictured during a static fire test. (Photo: US Navy)
The US Federal Trade Commission (FTC) sued to block Lockheed Martin’s proposed $4.4 billion acquisition of Aerojet Rocketdyne Holdings on 25 January.
Aerojet Rocketdyne Holdings is the last independent US supplier of missile propulsion systems, which are critical components for the missiles made by all US defence companies.
Aerojet and only one other competitor, Northrop Grumman, currently compete to provide solid rocket motors for missile systems, hypersonic cruise missiles and supersonic combustion ramjets.
Moreover, Aerojet is the only proven US supplier of divert-and-attitude control systems that propel missile defence kill vehicles.
The FTC alleges that if the acquisition was to take place, then Lockheed would gain a monopoly on the missile supply chain and potentially limit supply to its competitors.
Holly Vedova, Director of the FTC Bureau of Competition, commented: ‘Without competitive pressure, Lockheed can jack up the price the US government has to pay’.
This concern is particularly relevant as the US is currently undergoing an arms race for better missile technology with China and Russia.
Lockheed Martin responded to Shephard, declining to comment on the pending litigation but stating: ‘We are reviewing the FTC’s complaint and will respond in due course.’
More from Defence Notes
-
UK Chancellor commits £2 billion to make the country a “defence industrial superpower”
Rachel Reeves announced port upgrades, protected budgets for innovation and investment in novel technologies.
-
Launch of Gilat Defense targets DoD market
The communications company Gilat launched its new Gilat Defense division at the Satellite 2025 expo, with future solutions aimed at US military customers.
-
Collins MAPS Gen II to equip US DoD watercraft
US services have already conducted multiple tests with military maritime systems fitted with the system.
-
OCCAR expects substantial boost in programme numbers “in the coming months”
Europe’s Organisation for Joint Armament Cooperation (OCCAR) “has to establish itself…as a centre of excellence for cooperative Defence Equipment Programmes” in the face of growing threats and the need for rearmament, according to the organisation’s chairman.
-
MBDA CEO emphasises “moment of truth” for Europe as company sees €37 billion backlog
MBDA CEO Éric Béranger stressed the company’s role supporting European countries with complex weapon systems and focused on boosting production against the backdrop of “shifting” geopolitical alliances.