Lockheed Scraps Aerojet Deal After FTC Takes Tough Stance
- Aerojet falls 1.5% in trading Monday, Lockheed down 1%
- Termination raises strategy questions for both companies
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Lockheed Martin Corp. ended its bid to buy Aerojet Rocketdyne Holdings Inc. after the Federal Trade Commission sued to block the $4.4 billion deal on the grounds it would hurt competition among defense contractors.
The planned acquisition would have led to “greater efficiency, speed, and significant cost reductions for the U.S. government,” Lockheed Martin Chairman and Chief Executive Officer James Taiclet said in a statement. “However, we determined that in light of the FTC’s actions, terminating the transaction is in the best interest of our stakeholders.”