Lockheed Martin decides to terminate Aerojet Rocketdyne acquisition

US arms maker Lockheed Martin has cancelled its agreement to purchase rocket engine maker Aerojet Rocketdyne Holdings.

Free Report

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:

Macroeconomic and demographic environment
Consumer context
Industry environment
Competitive environment
Route to market

Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.

By GlobalData

By clicking the Download Free Report button, you accept the terms and conditions and acknowledge that your data will be used as described in the GlobalData privacy policy

By downloading this Report, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services.

Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Aerojet Rocketdyne produces aerospace and defence rocket engines and has 15 primary operations locations across the US.

The merger was projected to expand Lockheed Martin’s expertise in propulsion technology.

Lockheed Martin chairman, president and CEO James Taiclet said: “Our planned acquisition of Aerojet Rocketdyne would have benefitted the entire industry through greater efficiency, speed, and significant cost reductions for the US Government.

“However, we determined that in light of the FTC’s actions, terminating the transaction is in the best interest of our stakeholders. We stand by our long heritage as a merchant supplier and trusted partner and will continue to support Aerojet Rocketdyne and other essential suppliers in the Defense Industrial Base still overcoming the challenges of the pandemic.”

This announcement comes after the US Federal Trade Commission (FTC) filed a lawsuit to seek a preliminary injunction to stop the acquisition over antitrust concerns.

In December 2020, Lockheed Martin reached a definitive agreement to acquire Aerojet in a deal estimated at $4.4bn.

Now, Lockheed Martin will put efforts to use its capital to receive the highest return on investment.

In a statement, Aerojet Rocketdyne said: “We are poised to deliver substantial value to our shareholders driven by our continued leadership in key space exploration and defence growth markets, including by advancing hypersonics and strategic, tactical and missile defence systems.

“Aerojet Rocketdyne has delivered strong shareholder returns of 166% over the five years prior to the transaction announcement, significantly outperforming the Aerospace and Defence Index by 33% and the S&P 500 by 62%.”