L3Harris Technologies has announced its acquisition of American aerospace firm Aerojet Rocketdyne for $4.7 billion.
According to a joint statement, the merger would ensure the continued delivery of critical capabilities to warfighters while bolstering the defense industrial base in the US.
It could also accelerate innovation in national security propulsion solutions.
“Joining L3Harris is a testament to the world-class organization and team we’ve built and represents a natural next phase of our evolution,” Aerojet Rocketdyne president Eileen P. Drake said.
She further stated that the two companies would leverage their expertise and resources to continue space exploration and strengthen national defense.
The deal is still subject to approval by the Federal Trade Commission (FTC) and is expected to close in 2023.
Lockheed Acquisition Blocked by FTC
A move to acquire Aerojet Rocketdyne was first initiated by Lockheed Martin in 2020.
The aerospace giant said the potential merger would support critical security missions and maintain the country’s leadership in space and hypersonics technology.
However, the FTC blocked Lockheed’s $4.4 billion acquisition over concerns of unfair competition.
The Maryland-headquartered company is already one of the largest missile and space systems contractors. The potential merger would have given the firm a “dominant position” in the solid-fuel rocket engine manufacturing sector.
Lockheed Martin eventually terminated the multibillion-dollar agreement.
“We determined that in light of the FTC’s actions, terminating the transaction is in the best interest of our stakeholders,” Lockheed president James Taiclet said in February.
“We stand by our long heritage as a merchant supplier and trusted partner and will continue to support Aerojet Rocketdyne and other essential suppliers in the Defense Industrial Base.”