By Chris Wack
Aerojet Rocketdyne Holdings Inc. shares were down 16% to $37.93 in premarket trading Tuesday after the company expressed doubt that the Federal Trade Commission will approve its merger with Lockheed Martin Corp.
Lockheed Martin agreed to buy Aerojet in December 2020 in a deal valued at $4.4 billion.
Earlier this month, the companies agreed with the Federal Trade Commission they wouldn't close the transaction before Thursday to enable the parties to discuss the scope and nature of the merchant supply and firewall commitments previously offered by Lockheed Martin.
Aerojet Rocketdyne said it has been advised by the FTC that its concerns regarding the transaction can't be addressed adequately by the terms of the proposed consent order. Aerojet said it believes it is highly likely that the FTC will vote to sue to block the transaction and expects a decision before Thursday.
If the FTC sues to block the transaction, Lockheed Martin could elect to defend the lawsuit or terminate the merger agreement.
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(END) Dow Jones Newswires