Lockheed Martin fears being left without rocket engines if US approves Aerojet Rocketdyne purchase by L3Harris

Lockheed Martin fears it will be denied access to rocket engines if L3Harris buys Aerojet Rocketdyne. It has made a statement to this effect to the Federal Trade Commission (FTC) and the US Department of Defense.

Here's What We Know

Lockheed Martin is looking for partners and making investments in order to create another source for the production of solid rocket motors. This was announced by the company's CFO Frank St. John at the Paris Air Show.

The deal, under which L3Harris will buy Aerojet Rocketdyne, is expected to close in the second half of this year. Lockheed Martin, which also wanted to buy the Aerojet Rocketdyne, has already sent detailed letters to the FTC and the Pentagon outlining its concerns.

Lockheed hopes to sign an agreement that will strengthen its relationship with the company. If it fails to do so, it wants assurances that it will retain access to the technology after L3Harris buys Aerojet Rocketdyne.

RTX (formerly Raytheon Technologies) opposed Lockheed Martin's purchase of Aerojet and is not thrilled with the impending deal. However, CEO Greg Hayes believes that if L3Harris becomes the owner of Aerojet, it will improve product quality.

Source: Defence One