Risk to Shareholders Too High To Fight FTC In Court, Says CEO

Lockheed Martin has rescinded its $4.4 billion bid to acquire Aerojet Rocketdyne, saying that fighting the  Federal Trade Commission lawsuit in court would create too much risk for shareholders, despite the positive aspects that the integration would create. The deal has been in the works since 2020, when Lockheed targeted Aerojet in order to establish a foundation for its hypersonic, missile defense, and space travel programs. Aerojet was a fairly good target for acquisition, with plenty of business in its order book but hungry for a backer with deeper pockets. The FTC took issue with the prospective deal because the two companies essentially make up the entirety of the domes