US Senator Warren Warns Against L3Harris' Purchase Of Aerojet: Report

Lawmakers have reportedly warned against L3Harris Technologies Inc (NYSE:LHX) and Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) merger deal.

U.S. Senator Elizabeth Warren, a Democrat and frequent merger critic, joined three other lawmakers, who have urged the Defense Department to review the $4.7 billion deal thoroughly, reported Reuters.

Last month, Lockheed Martin Corp's (NYSE:LMT) chief operating officer, Frank St John, told Reuters that Lockheed, Aerojet's biggest customer, wanted L3Harris to ensure access to rocket motors, fair pricing, and IP protections, adding it had received "little response" from L3Harris over its concerns.

Warren and the other lawmakers stated that the Defense Department often adopts a lenient approach when advising the antitrust agencies on approving deals with a military component.

Also Read: L3Harris Eyes Divestment of $1B Avionics Unit

"Lockheed Martin, Raytheon, and Boeing are all dependent on products that only Aerojet is able to produce, and their operations could be hamstrung by its acquisition," they wrote, according to the report.

Price Action: LHX shares are trading higher by 0.50% at $195.62 on the last check Tuesday.