Lockheed raises concerns over L3Harris-Aerojet deal

Aerojet Rocketdyne Holdings

20/06/2023 11:17

(Adds more company comments, attempts to reach parties)
    By Valerie Insinna
       PARIS, June 20 (Reuters) - Lockheed Martin  LMT.N  has
raised concerns with the U.S. Defense Department and Federal
Trade Commission (FTC) about L3Harris's  LXH.N  acquisition of
Aerojet Rocketdyne  AJRD.N , Lockheed's chief operating officer
said on Tuesday. 
    Frank St John told Reuters that Lockheed, Aerojet's biggest
customer, wanted L3Harris to ensure access to rocket motors,
fair pricing and IP protections, adding it had received "little
response" from L3Harris over its concerns. 
    "To date, we've been unable to gain a commitment from
L3Harris for those provisions as a merchant supplier," St John
said in an interview at the Paris Airshow. 
    "This is really concerning to us because they are going to
be vital to meeting the increasing demand that we're seeing on
multiple weapons systems," such as the Javelin missile launcher
and Patriot air defense system.
    If L3Harris continues to be unresponsive, Lockheed wants the
Defense Department or FTC to put in place a mechanism to
guarantee access to technology, St John said.
    L3Harris, Aerojet Rocketdyne, the FTC and Defense Department
did not immediately respond to emailed requests for comment.
    L3Harris said in December it would buy Aerojet for $4.7
billion in cash as it looks to tap into rising demand for
missiles amid the Ukraine conflict.
    Lockheed had previously attempted to buy Aerojet in a $4.4
billion deal, but walked away from the acquisition in February
2022 after the FTC sued to block the deal, citing concerns that
Lockheed could hinder competitors' fair access to Aerojet
products.

 (Reporting by Valerie Insinna
Editing by Mark Potter)