Aerojet Rocketdyne Stock Plummets As FTC Sues To Block Lockheed Martin Deal

  • Aerojet Rocketdyne Holdings Inc AJRD stock fell following the disclosure that it is highly likely that the Federal Trade Commission (FTC) will vote to sue to block the Lockheed Martin Corp LMT transaction.
  • Meanwhile, the FTC stated it sued to block Lockheed Martin's $4.4 billion proposed vertical acquisition of Aerojet Rocketdyne.
  • "The FTC is suing to block Lockheed Martin, the world's largest defense contractor, from eliminating Aerojet, our nation's last independent supplier of key missile inputs," said FTC Bureau of Competition Director Holly Vedova.
  • The company issued a statement that the FTC has advised that concerns regarding the transaction cannot be addressed adequately by the terms of the proposed consent order.
  • If the FTC sues to block, Lockheed Martin could elect to defend the lawsuit or terminate the merger agreement.
  • Lockheed Martin and Aerojet Rocketdyne agreed with the FTC that they would not close the transaction before Jan. 27, 2022.
  • Also read, Lockheed Martin Q4 Earnings Surpass Street View.
  • Price Action: AJRD shares are trading lower by 15.6% at $37.99 and LMT higher by 0.82% at $376.40 on the last check Tuesday.
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