What's Next for Lockheed and Aerojet Rocketdyne Now That Their Deal Is Dead?
Lockheed Martin (NYSE: LMT) has formally pulled the plug on its planned $4.4 billion acquisition of Aerojet Rocketdyne Holdings (NYSE: AJRD), bowing to regulators who opposed the deal instead of engaging in what could have been a protracted court battle.
Lockheed had good reason to want to buy Aerojet: Space and missiles are two areas of emphasis inside the Pentagon, and Lockheed's existing space business has been under pressure from new entrants including Elon Musk's SpaceX. But the Federal Trade Commission (FTC) feared the acquisition would cut off access to Aerojet Rocketdyne's propulsion technologies to other contractors and was prepared to sue to block the deal.
The termination leaves both companies at a crossroads but probably says little about the prospects of further consolidation of the defense industry. Here's what investors need to know now that Lockheed Martin and Aerojet are not getting together.
Source Fool.com
