• About
    • Mission
    • Biographical Information
    • Contact Us
  • Defense
  • Energy
  • Logistics
  • Innovation
  • In the News
  • Follow
  • Like
  • Linkedin
  • Youtube
February 17, 2021

← Back
← Previous Post
Next Post →

Raytheon To Challenge Lockheed’s Takeover Of Aerojet, CEO Says (From Defense News)

February 17, 2021March 17, 2021Loren B. Thompson, Ph.D

A Forbes piece by Lexington COO Loren Thompson was quoted in a piece by Defense News on the recent Lockheed-Aerojet merger. The article, titled “Five Issues Washington Should Consider In Reviewing A Lockheed-Aerojet Merger,” opined that regulators should take into consideration the fragility of Aerojet in the market; that blocking the acquisition would give Northrop an unfair advantage; and that overall, the deal would reduce costs to the government.

“The way the relationship currently works, Aerojet includes a profit margin in the price it charges for its engines, and then Lockheed adds its own profit margin when it bills the government for the finished product. Under federal accounting rules, this ‘fee-on-fee’ arrangement would disappear if Aerojet became part of Lockheed,” Thompson said.

Read the full article here.

Print | PDF | EMail

Find Archived Articles:

This entry was posted in In the News. Bookmark the permalink.
Sign Up For
LexNext Emails
1600 Wilson Boulevard - Suite 203
Arlington, VA 22209 USA
Phone: 703.522.5828
Fax: 703.522.5837
© 2022 Lexington Institute

Sign Up for LexNext Emails

  • This field is for validation purposes and should be left unchanged.

Sign Up for LexNext Emails

  • This field is for validation purposes and should be left unchanged.