L3Harris nears $4.7 bln deal to acquire Aerojet Rocketdyne-sources

Aerojet Rocketdyne Holdings

17/12/2022 21:21

By David  Carnevali and Mike Stone
       Dec 17 (Reuters) - L3Harris Technologies Inc  LHX.N  is
nearing a $4.7 billion deal to acquire U.S. rocket maker Aerojet
Rocketdyne Holdings Inc  AJRD.N , 10 months after the latter's
$4.4 billion sale to Lockheed Martin Corp  LMT.N  fell through,
people familiar with the matter said on Saturday. 
    Lockheed Martin walked away from its deal with Aerojet in
February after antitrust regulators sued to block it, arguing
that allowing the El Segundo, California-based company to be
taken over by its biggest customer would have severely
disadvantaged Lockheed Martin's rivals.
    L3Harris is a defense contractor that is mostly a competitor
rather than a customer of Aerojet. Aerojet's solid fuel rocket
motors and other propulsion systems would help L3Harris expand
its space defense systems and precision munitions businesses.   
    L3Harris outbid General Electric Co  GE.N  in the final
stages of a sale process for Aerojet with a $58-per-share offer,
one of the sources said. An agreement could be announced as
early as Monday, the sources added. 
    The sources requested anonymity because the matter is
confidential. Spokespeople for Aerojet, L3Harris and General
Electric did not immediately respond to requests for comment.
 (Reporting by David Carnevali in New York and Mike Stone in
Washington, D.C.; Editing by Chizu Nomiyama)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))