Aerojet Rocketdyne [AJRD] said on Wednesday the Federal Trade Commission has asked the company and L3Harris Technologies
[LHX] for additional information related to L3Harris’ proposed $4.7 billion acquisition of the rocket maker.
The March 15 request for more information means that once the two companies meet their obligation for the additional information, they must wait another 30 days for the FTC to complete its review unless either the companies voluntarily extend the review period or the agency terminates the review early.
The companies continue to expect to conclude the deal this year, according to a filing Aerojet made with the Securities and Exchange Commission.
L3Harris in December 2022 announced its agreement to acquire Aerojet, the last independent supplier in the U.S. of tactical rocket motors and engines for space launch vehicles. The agreement came nearly a year after the U.S. government moved to block an attempt by Lockheed Martin [LMT] to acquire Aerojet due to anti-competitive concerns that might have resulted in higher prices for government customers and less innovation.
Northrop Grumman [NOC] previously acquired Orbital ATK, which also makes tactical rocket motors and rocket engines.
Sen. Elizabeth Warren (D-Mass.), who opposed Lockheed Martin’s proposed buy of Aerojet, is also against the L3Harris deal for the company. In January, she wrote the FTC urging them to oppose the merger.
“Waves of merger activity and consolidation have transformed our nation’s defense industry from a competitive market with over 50 firms to an oligopoly of five massive rivals, and nearly 20,000 small businesses have been pushed out of the defense market in the last decade alone,” Warren wrote.