(Lockheed Martin) Lockheed Martin Corp. will no longer pursue the proposed $4.4 billion deal for Aerojet Rocketdyne Holdings Inc. as US regulators raised antitrust concerns.
Lockheed says the decision to abandon the Aerojet deal follows a move by the US Federal and Trade Commission to block it, citing an unacceptable consolidation that would adversely affect rival defense contractors.
Aerojet’s deal also drew the attention of the rivals, who argued that it could thwart competition.
The deal was expected to add to Lockheed’s expertise in making rocket motors for its space and missile systems.
Lockheed CEO Jim Taiclet says the acquisition of Aerojet would have benefited the industry through greater speed, efficiency, and lower costs for the US government. The companies had also said the deal would have allowed the US to challenge Russia and China in areas such as hypersonic missiles.
The collapse of the Aerojet deal follows another by Nvidia Corp. for SoftBank’s Arm after a challenge by the FTC.
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