US FTC sues to block Lockheed Martin's purchase of Aerojet Rocketdyne

by Marc Selinger

A US Navy destroyer launches a Standard Missile-6 (SM-6) during a test. Aerojet Rocketdyne provides propulsion for most Raytheon missiles, including the SM-6. (US Navy)

The Federal Trade Commission (FTC) filed a lawsuit on 25 January seeking to block US defence contractor Lockheed Martin's proposed USD4.4 billion acquisition of US propulsion manufacturer Aerojet Rocketdyne, saying the combination could reduce competition in the missile market.

The FTC described Aerojet Rocketdyne as the last independent provider of missile propulsion in the United States and the only US supplier of divert-and-attitude control systems for missile defence kill vehicles. Lockheed Martin, meanwhile, is one of only a few prime contractors for missiles.

“If consummated, this deal would give Lockheed the ability to cut off other defence contractors from the critical components they need to build competing missiles,” said FTC Bureau of Competition Director Holly Vedova. “Without competitive pressure, Lockheed can jack up the price the US government has to pay, while delivering lower quality and less innovation.”


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Kaman to buy Parker Hannifin's Aircraft Wheel & Brake division

by Marc Selinger

Parker Hannifin provides wheels and brakes for military aircraft, including the CH-53K King Stallion heavy-lift helicopter that Sikorsky is building for the US Marine Corps. (US Marine Corps/Cpl Yuritzy Gomez)

US-based Parker Hannifin Corporation has agreed to sell its Aircraft Wheel & Brake business to US aircraft parts maker Kaman Corporation for USD440 million to address regulatory concerns about its proposed acquisition of the United Kingdom's Meggitt.

The 23 May announcement came about a month and a half after Parker disclosed it was in the process of finding a buyer for the business. The European Commission said in April that the divestiture is needed to preserve competition, as Parker and Meggitt are both “leading global suppliers of wheels and brakes for a range of aircraft types, including military helicopters and drones”.

The completion of the divestiture is contingent on Parker obtaining approval to acquire fellow motion and control system provider Meggitt, a Parker spokesperson said. The Meggitt purchase, which Parker plans to complete for GBP6.3 billion (USD7.9 billion) in the third quarter of 2022, is under review by UK Secretary of State for Business, Energy, and Industrial Strategy Kwasi Kwarteng and the US Department of Justice.


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Fabryka Broni sells Grot rifles to African customer

by Jakub Link-Lenczowski

PGZ has been awarded a contract by an unnamed East African country for Grot rifles chambered in 7.62×39 mm. (Jakub Link-Lenczowski)

Polish Armaments Group (Polska Grupa Zbrojeniowa: PGZ) announced in a press release on 19 May that it had been awarded a contract by an East African country for Grot rifles chambered in 7.62×39 mm. The company would not disclose the customer‘s name and the contract value.

The firearms, manufactured by PGZ subsidiary Fabryka Broni (FB) 'Łucznik' Radom, will be delivered with under-barrel grenade launchers (UBGLs) and daylight optical sights manufactured by another PGZ subsidiary, Przemysłowe Centrum Optyki (PCO). Janes expects the 7.62×39 mm Grot rifles to be delivered with 16-inch barrels, telescopic stocks, and 30-round magazines. The weapons can be operated in full-auto and single-shot modes and they have a theoretical rate of fire of 700–900 rds/min.

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Naval Group confirms withdrawal from Indian submarine project

by Jon Grevatt

Naval Group has confirmed to Janes that it has withdrawn from India's project to procure six new diesel-electric submarines. The programme is a follow-on to the P-75 project in which the French shipbuilder is collaborating with Mazagon Dock on the construction of Kalvari (Scorpène)-class submarines for the Indian Navy (the fourth of which is pictured above). (Indian Navy)

Naval Group has withdrawn its bid from the Indian Navy's long-deferred Project 75(I) programme to acquire six diesel-electric attack submarines, the company has confirmed.

The French shipbuilder told Janes on 23 May that it is unable to compete for the INR400 billion (USD5.15 billion) programme because of conditions contained in the project's request for proposals (RFP) document.

The Indian Ministry of Defence (MoD) issued the Project 75(I) RFP in July 2021 and called on two Indian firms – state-owned Mazagon Dock Shipbuilders Limited (MDL) and private-sector Larsen & Toubro (L&T) – to act as ‘strategic partners' and build the submarines in collaboration with a foreign submarine manufacturer.


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https://www.janes.com/defence-news/industry-headlines/latest/us-ftc-sues-to-block-lockheed-martins-purchase-of-aerojet-rocketdyne

The Federal Trade Commission (FTC) filed a lawsuit on 25 January seeking to block US defence contrac...

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