Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

US Senator Warren, others warn against L3Harris plan to buy Aerojet

Published 07/11/2023, 05:31 AM
Updated 07/11/2023, 12:06 PM
© Reuters. FILE PHOTO: The logo of L3Harris is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 1, 2019. REUTERS/Brendan McDermid
BA
-
LMT
-
RTN
-
LHX
-
AJRD
-

WASHINGTON (Reuters) - U.S. Senator Elizabeth Warren, a Democrat and frequent merger critic, joined three other lawmakers on Tuesday to urge the Defense Department to thoroughly review defense contractor L3Harris Technologies (NYSE:LHX)' $4.7 billion deal for Aerojet Rocketdyne Holdings (NYSE:AJRD).

The Defense Department is influential with the antitrust agencies on decisions about approving deals that touch on military issues, and often take too soft an approach, Warren and the other lawmakers wrote.

" Lockheed Martin (NYSE:LMT), Raytheon (NYSE:RTN), and Boeing (NYSE:BA) are all dependent on products that only Aerojet is able to produce, and their operations could be hamstrung by its acquisition," they wrote.

The letter was sent to Defense Secretary Lloyd Austin and William LaPlante, undersecretary of defense for acquisition and sustainment.

In addition to Warren, the letter was signed by Representatives Chris Deluzio, John Garamendi and Mark Pocan. All are Democrats.

The lawmakers said the department had previously conducted what the letter called "flawed merger reviews."

With the Ukraine war driving up demand for missiles and defense systems, Aerojet became an attractive takeover target. L3Harris was formed by the merger of L3 Technologies and Harris Corp in 2019.

The United States has assisted Ukraine with billions of dollars in military aid, including missiles and air defense systems.

© Reuters. FILE PHOTO: The logo of L3Harris is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 1, 2019. REUTERS/Brendan McDermid

Aerojet develops and manufactures liquid and solid rocket propulsion and hypersonic engines for space, defense, civil and commercial applications.

Another customer is the National Aeronautics and Space Administration (NASA), one of Aerojet's main customers, which is pursuing moon and deep space missions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.