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U.S. FTC delays vote on Lockheed purchase of Aerojet for two weeks -sources -Breaking

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© Reuters.

Mike Stone and Diane Bartz

WASHINGTON (Reuters] – A vote by the U.S. Federal Trade Commission on mergers has been delayed. The commission, which evaluates mergers for compliance with antitrust law to determine their effectiveness, is responsible for determining whether they should be allowed. Lockheed Martin Two people who were briefed said that the purchase of Aerojet Rockdyne could take as long as two weeks.

According to one person, initially the vote was set for midweek. However, another said that the FTC would be able to extend the deadline in order for them more time for evaluating terms of the merger.

Subject to anonymity, the people spoke. Lockheed Martin spokespeople declined to comment. FTC didn’t immediately reply to my request for comment.

Lockheed, the world’s No. 1 defense contractor, has been criticised for approving this deal. The deal would give Lockheed – the No. 1 defense contractor, a dominant position in a critical part of U.S.’s missile industry. Everything from Stinger missiles to the homeland defense missile shield is powered by rocket motors. The proposed deal has been opposed by Raytheon Missile Company (NYSE:).

Lockheed announced the $4.4 billion acquisition in 2020. This is Lockheed’s first major acquisition since its new chief executive Jim Taiclet. It would change the landscape of solid rocket fuel missiles that can be used with drones or jets.

Aerojet designs and produces liquid and solid rocket propulsion as well air-breathing supersonic engines and electric propulsion. The Pentagon, NASA and Lockheed Martin are some of its customers. Raytheon Technologies (NYSE) is another customer.

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