Lockheed Martin pulls plug on Aerojet Rocketdyne buy

US aerospace and defence prime Lockheed Martin has terminated its agreement to acquire Aerojet Rocketdyne Holdings Inc for $4.4bn, the company announced earlier this month.

The decision to drop the deal came after the US Federal Trade Commission (FTC) initiated a lawsuit on January 25 seeking to block the acquisition on anti-trust grounds.

Aerojet Rocketdyne provides the propulsion system for Lockheed Martin's Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) missile, the enhanced version of the proven PAC-3 system. White Sands Missile Range

In what it acknowledged was its first litigated defence merger challenge in decades, the FTC stated: “Today, the Federal Trade Commission sued to block Lockheed Martin Corporation’s $4.4bn proposed vertical acquisition of Aerojet Rocketdyne Holdings Inc: the last independent US supplier of missile propulsion systems. Aerojet supplies advanced power, propulsion, and armament systems, which are critical components for the missiles made by Lockheed and other defence prime contractors. 

Become a Premium Member to Read More

This is a premium article and requires an active Key.Aero subscription to view.

I’m an existing member, sign me in!

I don’t have a subscription…

Enjoy the following subscriber only benefits:

  • Unlimited access to all KeyAero content
  • Exclusive in-depth articles and analysis, videos, quizzes added daily
  • A fully searchable archive – boasting hundreds of thousands of pieces of quality aviation content
  • Access to read all our leading aviation magazines online - meaning you can enjoy the likes of FlyPast, Aeroplane Monthly, AirForces Monthly, Combat Aircraft, Aviation News, Airports of the World, PC Pilot and Airliner World - as soon as they leave the editor’s desk.
  • Access on any device- anywhere, anytime
  • Choose from our offers below