After Aerospace Lobbying Blitz, FTC Seeks To Block Merger

This article by William Gavin is published by Open Secrets. Here is an excerpt:

After Lockheed Martin Corp. announced plans to acquire Aerojet Rocketdyne Inc. in December 2020, the two companies aggressively lobbied the federal government for approval. But the Federal Trade Commission sued on Jan. 25 to block the $4.4 billion merger, marking the agency’s first litigated defense merger challenge in decades.

The proposed merger would see the only large independent U.S. producer of engines for rockets and missiles, Aerojet, merge with the largest defense contractor in the world, Lockheed Martin. The merger, if successful, would give Lockheed a significant advantage over competitors and obtain “sensitive, non-public information” about its rivals’ technology, the FTC report alleged. 

“If consummated, this deal would give Lockheed the ability to cut off other defense contractors from the critical components they need to build competing missiles,” said FTC Bureau of Competition Director Holly Vedova. “Without competitive pressure, Lockheed can jack up the price the U.S. government has to pay, while delivering lower quality and less innovation.”

Read the full article here.