US FTC blocks Lockheed Martin $4.4 billion acquisition
The acquisition of Aerojet could affect the supply chain of missiles, such as this 34" common hypersonic missile pictured during a static fire test. (Photo: US Navy)
Lockheed Martin has responded to the news that the US FTC is suing to block its acquisition of Aerojet Rocketdyne Holdings.
The US Federal Trade Commission (FTC) sued to block Lockheed Martin’s proposed $4.4 billion acquisition of Aerojet Rocketdyne Holdings on 25 January.
Aerojet Rocketdyne Holdings is the last independent US supplier of missile propulsion systems, which are critical components for the missiles made by all US defence companies.
Aerojet and only one other competitor, Northrop Grumman, currently compete to provide solid rocket motors for missile systems, hypersonic cruise missiles and supersonic combustion ramjets.
Moreover, Aerojet is the only proven US supplier of divert-and-attitude control systems that propel missile defence kill vehicles.
The FTC alleges that if the acquisition was to take place, then Lockheed would gain a monopoly on the missile supply chain and potentially limit supply to its competitors.
Holly Vedova, Director of the FTC Bureau of Competition, commented: ‘Without competitive pressure, Lockheed can jack up the price the US government has to pay’.
This concern is particularly relevant as the US is currently undergoing an arms race for better missile technology with China and Russia.
Lockheed Martin responded to Shephard, declining to comment on the pending litigation but stating: ‘We are reviewing the FTC’s complaint and will respond in due course.’
More from Defence Notes
-
![Patria to deliver Hawk trainer jet full mission simulator to Finnish Defence Forces]()
Patria to deliver Hawk trainer jet full mission simulator to Finnish Defence Forces
Patria has signed a procurement contract with the Finnish Defence Forces to provide a Hawk Full Mission Simulator (FMS) for pilot training, boosting the realistic and extensive training capabilities of the Finnish Air Force.
-
![US Army seeks 'fundamental transformation' to face future threats]()
US Army seeks 'fundamental transformation' to face future threats
‘The army is really undergoing its most fundamental transformation in 40 years. We are moving away from the system that we designed in the 80s’, Secretary of the Army Christine Wormuth has claimed,
-
![DSEI 2023 in review: Ukraine, AI and the real world]()
DSEI 2023 in review: Ukraine, AI and the real world
DSEI 2023 took place in the shadow of the largest European land war in more than seven decades and a growth in conversations about artificial intelligence (AI) with limited UK immediate defence programme opportunities; many of the new products and exhibitors' announcements reflected this.
-
![Pentagon to strengthen cyber networks of US partners and allies]()
Pentagon to strengthen cyber networks of US partners and allies
The recently released 2023 Cyber Strategy states that the US will build the capacity and capability of allies and partners in cyberspace and expand avenues of potential cyber cooperation.
-
![Pentagon bets on advanced autonomous solutions to match Chinese military capabilities]()
Pentagon bets on advanced autonomous solutions to match Chinese military capabilities
The US DoD recently disclosed details of the Replicator initiative to field thousands of uncrewed systems in two years across multiple domains.
