2023-07-13 13:15:06 ET
Aerojet Rocketdyne ( NYSE: AJRD ) rose 0.4% amid a report that L3Harris ( NYSE: LHX ) committed to a merchant supplier relationship with the defense industry in the solid-rocket motor market.
L3Harris ( LHX ) wrote a letter to the Defense Department claiming that it wouldn't favor some defense companies over others after it completes its planned purchase of rocket maker Aerojet, according to a CTFN report on Thursday, which cited an industry source. The pledge is said to be aimed at appeasing some issues from Lockheed Martin ( LMT ) and to some extent Raytheon ( RTX ).
The CTN report comes after a note from a Wall Street brokerage circulated on Wednesday that the Department of Defense is expected to have no objections to the rocket maker's sale to L3Harris ( LHX ). The DOD is expected to recommend to the Federal Trade Commission that it has no opposition to the proposed deal as soon as this week.
Sen. Elizabeth Warren (D-MA) sent a letter Tuesday to Defense Secretary Lloyd Austin and others urging the Defense Department to carefully review the $4.7 billion acquisition of Aerojet ( AJRD ).
A bipartisan group of more than 30 members of Congress signed off on a letter to the Secretary of Defense supporting the Aerojet ( AJRD ) deal, according to reports by Dealreporter and CTFN last month.
Aerojet ( AJRD ) and L3 Harris ( LHX ) received a request for a more in-depth review from the Federal Trade Commission in March. CTFN previously reported that a decision from the FTC is expected to be announced by the end of the July.
Last month, The U.S. Chamber of Commerce said L3Harris ( LHX ) planned acquisition of Aerojet (AJRD ) shouldn’t be blocked on antitrust grounds.
More on Aerojet/L3Harris
- L3Harris certifies compliance with FTC on Aerojet planned acquisition - report
- Lockheed Martin said to voice worries about L3Harris purchase of Aerojet
- L3Harris expected to meet with Defense Dept. this week on Aerojet deal - report
- Aerojet Rocketdyne: Just A Hold
- Aerojet Rocketdyne: Expect The L3Harris Deal To Close
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Aerojet ticks higher amid report L3Harris made supplier commitment to Pentagon