Why Aerojet Rocketdyne Shares Are Crashing Today
Shares of Aerojet Rocketdyne Holdings (NYSE: AJRD) fell 15% at the open on Tuesday due to fresh doubt about the company's pending $4.4 billion deal to be acquired by Lockheed Martin (NYSE: LMT). Regulators are unlikely to sign off on the deal before a late January deadline, meaning there is a chance this could be headed to court.
In December 2020, Lockheed announced plans to acquire Aerojet for $56 per share in cash, a premium of 33% to the target's closing price prior to the announcement. The deal makes a lot of sense for both parties. Lockheed would be investing in space, one of the few areas ripe for sustained growth. And Aerojet would transition from being a niche provider of rocket propulsion systems to part of a larger, more diversified defense contractor.
A solid-state rocket engine test. Image source: Aerojet Rocketdyne.
Source Fool.com
