Aerospace and defence company Lockheed Martin has terminated its agreement to buy rocket developer Aerojet Rocketdyne after the US Federal Trade Commission filed a lawsuit late last month to block the acquisition.
The US Federal Trade Commission (FTC) filed the lawsuit last month after Lockheed announced its intention to buy Aerojet Rocketdyne in December. Critics of the deal believed the acquisition would give Lockheed Martin an unfair advantage in the area of solid fuel rocket motors, which are used in missiles.
Lockheed Martin’s chairman, president and CEO James Taiclet said, “Our planned acquisition of Aerojet Rocketdyne would have benefitted the entire industry through greater efficiency, speed and significant cost reductions for the US government.
“However, we determined that in light of the FTC’s actions, terminating the transaction is in the best interest of our stakeholders. We stand by our long heritage as a merchant supplier and trusted partner and will continue to support Aerojet Rocketdyne and other essential suppliers in the Defense Industrial Base still overcoming the challenges of the pandemic.
“Moving forward, we will maintain our focus on the most effective use of capital with the highest return on investment, including our ongoing commitment to return value to shareholders. We remain confident in our company’s strong foundation and growth potential as several exciting projects enter production.”