Regulators seek more info out of Lockheed & Aerojet

U.S. antitrust regulators will take more time and will ask for more information about Lockheed Martin’s proposed acquisition of Aerojet Rocketdyne.

The Federal Trade Commission’s so-called “second request” for additional information was one Lockheed and Aerojet expected, the companies said in a release Friday.

Lockheed’s waiting period to close the transaction last for 30 days after Lockheed and Aerojet comply with the FTC’s request or if the agency terminates that waiting period earlier.

“We are working cooperatively with the Federal Trade Commission as it conducts its review of the transaction and we continue to expect to complete the acquisition in the second half of 2021,” Lockheed added.

Mergers and acquisitions involving large defense platform companies can take up to one year to get through antitrust review processes that involve either the FTC or Justice Department’s antitrust division, plus of course the Defense Department given supply chain implications.

Competitors also can weigh in and Lockheed is seeking to bring down the concern level regarding Aerojet's ability to supply solid rocket motors to others.

At a Barclays-hosted investor conference this week, Raytheon Technologies CEO Greg Hayes said they will share their concerns to the Pentagon and DOJ. Lockheed Chief Financial Officer Ken Possenriede pushed the counterpoint a few hours later.