JPM expects L3Harris to buy Aerojet amidst U.S. FTC's second request

Aerojet Rocketdyne Holdings

16/03/2023 09:18

** J.P.Morgan says it strongly believes L3Harris
Technologies Inc's  LHX.N  plan to buy Aerojet Rocketdyne
Holdings Inc  AJRD.N  will go through
    ** LHX on Wednesday said Federal Trade Commission (FTC) had
requested additional information (second request) as part of the
regulatory review process for the deal
    ** JPM thinks the deal facilitates DoD's interests and U.S.
government's national security and political priorities
    * Earlier this week, Biden had requested $886 bln for 2024
U.S. national security budget
    ** "If regulators reject this deal, we would be left
questioning the level of policy coordination within the
administration as well as DoD’s ability to advocate for its
interests" - JPM
    ** The 'second request' extends the waiting period until 30
days after LHX and AJRD comply with the request, or the waiting
period is terminated sooner by the FTC
    ** LHX said it expects the transaction to close in 2023

 (Reporting by Reshma Rockie George in Bengaluru)
 ((Reshma.George@thomsonreuters.com))