Lockheed Martin Corp. scraps plan to acquire Aerojet Rocketdyne after federal regulators sued to ban the $4.4B deal, according to a news release by Lockheed Martin on Sunday.  

  • Lockheed Martin, the world’s biggest defense company on the basis of sales, was optimistic about adding Aerojet’s expertise in developing rocket motors for its own missile and space systems.
  • The proposed arrangement attracted opposition from the Federal Trade Commission and rivals argued that the combination could hamper competition.
  • Lockheed Martin initially reported plans to acquire Aerojet Rocketdyne in December 2020. The deal comes after an unsuccessful move by Aerojet Rocketdyne to acquire a joint venture between Lockheed Martin and Boeing Co. that launches military satellites.
  • The finalization of the proposed Lockheed-Aerojet arrangement was pushed back multiple times after FTC officials raised issues about its impact.

A lawsuit was filed last month by the FTC pushing to block the deal, triggering Lockheed to scrap the deal on Sunday. LMT up +0.77%, Pre-market trading.