Lockheed Martin Scraps $4.4B Agreement to Acquire Aerojet Rocketdyne

Lockheed Martin today announced it has terminated its agreement to acquire rocket engine maker Aerojet Rocketdyne Holdings, Inc. for $4.4 billion.

The decision to terminate the agreement follows the U.S. Federal Trade Commission's (FTC) lawsuit filed late last month seeking a preliminary injunction to block the acquisition.

Aerojet produces liquid and solid rocket propulsion, air-breathing hypersonic engines and electric power and propulsion for space, defense, civil and commercial applications. Its customers include the Pentagon, NASA, Lockheed Martin, Boeing, Raytheon and the United Launch Alliance. Lockheed claimed it accounted for 33% of Aerojet's sales and argued that the acquisition would reduce costs for the Pentagon and the U.S. taxpayer.

"Our planned acquisition of Aerojet Rocketdyne would have benefitted the entire industry through greater efficiency, speed, and significant cost reductions for the U.S. government," said Lockheed Martin Chairman, President and CEO James Taiclet. "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.”

The merger, which was announced in late 2020, drew criticism as it would give Lockheed Martin a dominant position over solid fuel rocket motors.