U.S. defense contractor
has agreed to buy rocket engine maker
in an all-cash deal valued at $4.7 billion.
Aerojet (ticker: ARJD) was targeted by Lockheed Martin (LMT) in a deal reached in December 2020, but the aerospace and defense giant terminated its proposed $4.4 billion takeover after the Federal Trade Commission sued to block the acquisition over antitrust concerns.
L3Harris (LHX) CEO Chris Kubasik has said he wants the company to become an alternative to the largest Pentagon suppliers, including Lockheed and Raytheon Technologies.
A deal for Aerojet, which also is expected to face regulatory scrutiny, would certainly help toward Kubasik’s aim.
“We’ve heard the DoD leadership loud and clear: they want high-quality, innovative and cost-effective solutions to meet both current and emerging threats, and they’re relying upon a strong, competitive industrial base to deliver those solutions,” Kubasik said in a statement.
In October, L3Harris agreed to buy a military communications business — Link 16 Tactical Data Links — from Viasat.
L3Harris is a product of the biggest ever defense merger between L3 Technologies and Harris Corporation in 2019, creating the sixth-largest U.S. defense contractor.
It wants to keep growing but its latest merger faces a tough task ahead to get regulatory approval.
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