Aerojet Rocketdyne Shares Drop Premarket as Lockheed Buyout in Doubt
January 25 2022 - 9:14AM
Dow Jones News
By Chris Wack
Aerojet Rocketdyne Holdings Inc. shares were down 16% to $37.93
in premarket trading Tuesday after the company expressed doubt that
the Federal Trade Commission will approve its merger with Lockheed
Martin Corp.
Lockheed Martin agreed to buy Aerojet in December 2020 in a deal
valued at $4.4 billion.
Earlier this month, the companies agreed with the Federal Trade
Commission they wouldn't close the transaction before Thursday to
enable the parties to discuss the scope and nature of the merchant
supply and firewall commitments previously offered by Lockheed
Martin.
Aerojet Rocketdyne said it has been advised by the FTC that its
concerns regarding the transaction can't be addressed adequately by
the terms of the proposed consent order. Aerojet said it believes
it is highly likely that the FTC will vote to sue to block the
transaction and expects a decision before Thursday.
If the FTC sues to block the transaction, Lockheed Martin could
elect to defend the lawsuit or terminate the merger agreement.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
January 25, 2022 08:59 ET (13:59 GMT)
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