The move comes after the US Federal Trade Commission They voted unanimously
Last month to file a lawsuit to block the deal due to antitrust concerns.
merger that was announce
In late 2020, he drew criticism that it would give Lockheed a dominant position in solid-fuel rocket engines – a vital part of the US missile industry.
“Our planned acquisition of Aerojet Rocketdyne would have benefited the entire industry through increased efficiency, speed and significant cost reductions for the US government,” said James Ticklett, CEO of Lockheed Martin. In a press release
. “However, we have determined that in light of the FTC’s actions, termination of the transaction is in the best interests of our stakeholders.”
“We stand by our long heritage as a trusted dealer supplier and partner and will continue to support Aerojet Rocketdyne and other key suppliers in a defense industrial base that continues to weather the challenges of the pandemic,” Taichlet added.
After Lockheed closed the deal, Aerojet Rocketdyne issued a statement
Noting that it “is poised to deliver significant value to our shareholders driven by our continued leadership in key space exploration and defense growth markets, including through the development of hypersonic, strategic, tactical and missile defense systems.”
“We are confident in our future performance with an impressive backlog of more than three times our annual turnover and a strong macroeconomic environment that supports our portfolio,” she added.
CNN Business’ Rob McClain contributed to this report