Report: FTC Needs More Time for Lockheed-Aerojet Rocketdyne Deal Evaluation

The Federal Trade Commission postponed a decision on Lockheed Martin’s (NYSE: LMT) proposed $4.4 billion cash acquisition of rocket propulsion builder Aerojet Rocketdyne (NYSE: AJRD) for two weeks, giving U.S. antitrust regulators extra time to assess the terms of the companies’ deal, Reuters reported Tuesday.

Sources told Reuters that the agency had planned a midweek vote on the transaction, which Lockheed first announced in December 2020 and expected to close in the second half of 2021.

Some federal and industry executives voiced concerns that a combination of the two companies would stifle competition in the missile defense industry where Aerojet Rocketdyne is a key rocket and engine supplier.

In September last year, a bipartisan group of 13 lawmakers expressed their support for the pending merger in their joint letter to Deputy Defense Secretary Kathleen Hicks.

Jim Taiclet, chairman, president and CEO of Lockheed, told analysts in October that the company anticipates closure of the deal in the first quarter of 2022.

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