Hypersonic defense deal covers most of its bases

Aerojet Rocketdyne Holdings

19/12/2022 17:31

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Jonathan Guilford
       NEW YORK, Dec 19 (Reuters Breakingviews) - Aerojet
Rocketdyne’s $4.7 bln sale comes after U.S. trustbusters used
the last effort to target the industry’s consolidation. L3Harris
should be a safer buyer and there’s extra security like a hefty
reverse break fee. Feisty regulators and investors may yet pose
threats, however.
    Full view will be published shortly.
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    CONTEXT NEWS
    Rocket-maker Aerojet Rocketdyne said on Dec. 18 that it had
agreed to be acquired by defense contractor L3Harris
Technologies for $4.7 billion in cash. 
    Under terms of the deal, L3Harris will pay $58 a share, a
premium of about 37% to its undisturbed price on Aug. 15.
    Antitrust enforcers at the U.S. Federal Trade Commission
blocked Aerojet's previously agreed sale to defense conglomerate
Lockheed Martin in February.
 (Editing by Jeffrey Goldfarb and Amanda Gomez)
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