On Sunday, U.S. defense technology company Lockheed Martin Corp said it scrapped its plan to acquire rocket engine maker Aerojet Rocketdyne Holding Inc for $4.4 billion.
The verdict comes after the U.S. Federal Trade Commission voted unanimously to sue to block the deal over antitrust concerns last month. Lockheed Martin, in Dec 2020, announced its aim to buy Aerojet Rocketdyne, the last independent U.S. supplier of missile propulsion systems.
Aerojet Rocketdyne supplies propulsion, power, and armament systems used in missiles made by Lockheed Martin and other defense prime contractors.
James Taiclet, CEO and President of Lockheed Martin, said in a statement that they were determined that in the light of the U.S. FTC’s actions, terminating transactions is in the best interest of their stakeholders.
CEO Taiclet insisted that the deal would have benefitted the entire industry through greater efficiency, speed, and significant cost reductions for the U.S. government.
Since the FTC announced its decision, industry analysts had predicted Lockheed Martin would abandon the merger agreement rather than fight the U.S. government in court.
Aerojet Rocketdyne, in a statement, said that the firm is pressing forward as an independent firm.