WASHINGTON (Reuters) -The U.S. Federal Trade Commission (FTC) has told Lockheed Martin that its planned $4.4 billion deal for rocket specialist Aerojet Rocketdyne will raise antitrust concerns. Aerojet's shares fell 16% to $37.80 in pre-market trading, with the business having been valued at $51 per share in Lockheed's offer. Lockheed shares were up 0.5% at $375.
(Reuters) -U.S. weapons maker Lockheed Martin Corp reported better-than-expected quarterly profit on Tuesday, helped by a strong performance at its ships and helicopters unit and venture capital gains, and reiterated its sales guidance for 2022. But the company also said it had been informed by the U.S. Federal Trade Commission that its planed purchase of Aerojet Rocketdyne would raise antitrust concerns, leaving Lockheed either to abandon the transaction or fight a federal lawsuit in order to close the deal. The $4.4 billion deal announced in late 2020 is Lockheed's first large acquisition under new Chief Executive Jim Taiclet.
While the broad market is experiencing the worst start to a year since 2016, some stocks outperform by a solid margin. Lockheed Martin Corporation (NYSE: LMT) has been such a company, quietly racking up modification contracts while still trading at an attractive valuation.