The transfer comes after the U.S. Federal Commerce Fee voted unanimously
final month to sue to dam the deal over antitrust considerations.
The merger, which was introduced
in late 2020, drew criticism as it will give Lockheed a dominant place over strong gasoline rocket motors — an important piece of the U.S. missile business.
“Our deliberate acquisition of Aerojet Rocketdyne would have benefitted your entire business by way of better effectivity, velocity, and important price reductions for the U.S. authorities,” mentioned Lockheed Martin CEO James Taiclet in a information launch
. “Nevertheless, we decided that in mild of the FTC’s actions, terminating the transaction is in the most effective curiosity of our stakeholders.”
Taiclet added, “We stand by our lengthy heritage as a service provider provider and trusted companion and can proceed to assist Aerojet Rocketdyne and different important suppliers within the Protection Industrial Base nonetheless overcoming the challenges of the pandemic.”
After Lockheed ended the deal, Aerojet Rocketdyne issued an announcement
indicating it’s “poised to ship substantial worth to our shareholders pushed by our continued management in key house exploration and protection progress markets, together with by advancing hypersonics and strategic, tactical and missile protection techniques.”
“We’re assured in our future efficiency with a powerful backlog that’s greater than thrice the scale of our annual gross sales and a powerful macroeconomic surroundings underpinning our portfolio,” it added.
– CNN Enterprise’ Rob McLean contributed to this report