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Aerojet (NYSE:AJRD) rose 1.8% amid a report that the Department of Defense is expected to have no objections to the rocket maker's sale to L3Harris (NYSE:LHX).
The Defense Department is expected to recommend to the Federal Trade Commission that it has no opposition to the proposed deal as soon as this week, according to traders, who cited a sell side brokerage note that was circulating on Wednesday.
The note comes after Sen. Elizabeth Warren (D-MA) Tuesday sent a letter to Defense Secretary Lloyd Austin and others urging the Defense Department to carefully review the $4.7 billion acquisition of Aerojet (AJRD).
The latest Warren letter comes after she urged the Federal Trade Commission in January to review the Aerojet (AJRD) deal. A bipartisan group of more than 30 members of Congress signed off on a letter to the Secretary of Defense supporting the Aerojet (AJRD) deal, according to reports by Dealreporter and CTFN last month.
Last month, The U.S. Chamber of Commerce said L3Harris (LHX) planned acquisition of Aerojet (AJRD) shouldn’t be blocked on antitrust grounds.
The FTC’s scrutiny of L3Harris's (LHX) planned deal comes a year and a half after it sued to block Lockheed Martin’s (LMT) $4.4 billion acquisition of Aerojet (AJRD), arguing that the combined company would be able to cut off supplies of key missile parts to competitors and harm national security.
CTFN reported in December 2021 that the Pentagon supported Aerojet's (AJRD) planned sale to Lockheed (LMT).
Dealreporter yesterday also wrote an item that executives from L3Harris (LHX) and Aerojet (AJRD) are in Florida this week working on transition planning as the companies wait for the FTC to decide on their combination. L3Harris (LHX) is targeting a close in the first week of August, according to the report.
More on Aerojet/L3Harris
- L3Harris certifies compliance with FTC on Aerojet planned acquisition - report
- Lockheed Martin said to voice worries about L3Harris purchase of Aerojet
- L3Harris expected to meet with Defense Dept. this week on Aerojet deal - report
- Aerojet Rocketdyne: Just A Hold
- Aerojet Rocketdyne: Expect The L3Harris Deal To Close