L3Harris' proposed purchase of Aerojet Rocketdyne hits a new snag

By John Liang / March 15, 2023 at 5:08 PM

L3Harris Technologies announced today it has received a request for additional information -- what's known as a "second request" -- from the Federal Trade Commission regarding the company's proposed acquisition of Aerojet Rocketdyne.

"The second request extends the waiting period imposed by the Hart-Scott-Rodino Act until 30 days after L3Harris and Aerojet Rocketdyne have substantially complied with the request, or the waiting period is terminated sooner by the FTC," an L3Harris statement reads. "The transaction is expected to close in 2023, subject to approval by Aerojet Rocketdyne's shareholders tomorrow and other customary closing conditions."

L3Harris announced its plan to acquire Aerojet for $4.7 billion this past December.

Aerojet manufactures propulsion systems for customers including the Defense Department and NASA. It's one of only two U.S. manufacturers of solid-rocket motors -- the other being Northrop Grumman, which purchased Orbital ATK in 2018.

In a Jan. 26 letter to the FTC, Sen. Elizabeth Warren (D-MA) opposed the proposed acquisition.

"This deal between Aerojet and L3Harris would reduce competition in the shrinking defense industry to a new low, and I encourage the FTC to oppose this dangerous transaction," she wrote.