The Biden administration has signaled Lockheed Martin that any further mergers in the defense space are unlikely to win government approval. The inescapable conclusion is that if the company wants to grow in defense, it will have to do so organically rather than through acquisitions. That should not be hard. There are any number of opportunities waiting in the wings that could add as much to the top and bottom line as Aerojet would have. The company could expand its sustainment support of the F-35 fighter. It could benefit handsomely from work on space resilience. It could complement its work on hypersonic weapons by helping to defend against such systems. It could win part or all of the Future Vertical Lift program, potentially building thousands of rotorcraft. And those are just the biggest near-term opportunities. Lockheed Martin is going to do fine without new mergers or acquisitions. I have written a commentary for Forbes here.
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