LMT - Lockheed Martin said to voice worries about L3Harris purchase of Aerojet

2023-06-20 08:30:28 ET

Lockheed Martin ( NYSE: LMT ) told the U.S. Department of Defense and the Federal Trade Commission that L3Harris Technologies’ ( NYSE: LHX ) planned acquisition of Aerojet Rocketdyne ( NYSE: AJRD ) has raised concerns about unfair competition, Reuters reported Tuesday.

Frank St. John, COO of Lockheed Martin ( LMT ), said the defense contractor asked L3Harris ( LHX ) to provide guarantees on access to rocket motors, fair prices and intellectual-property protections. It received “little response” from L3Harris ( LHX ), St. John told Reuters at the Paris Air Show.

Without a response from L3Harris ( LHX ), Lockheed Martin ( LMT ) wants the Defense Department or FTC to implement a way to get access to technology, the COO said.

L3Harris ( LHX ) in December announced a plan to buy Aerojet ( AJRD ) for $4.7 billion in cash amid rising demand for missiles with the war in Ukraine. Lockheed Martin ( LMT ) had tried to acquire Aerojet ( AJRD ) for $4.4 billion, but withdrew the offer after the FTC filed suit. Officials were concerned that the acquisition would hinder competition.

Raytheon Technology ( NYSE: RTX ) had opposed Lockheed Martin's ( LMT ) planned takeover of Aerojet ( AJRD ), but doesn’t object to L3Harris’s ( LHX ) bid for the maker of rocket engines, Defense One reported.

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