Law360: FTC, DOD Scrutiny Could Chill Defense Deals
February 16, 2022
United States
United States
United States
Eversheds Sutherland Partner Jeff Bialos is quoted in this article by Law360 discussing the Federal Trade Commission's (FTC) lawsuit to block Lockheed
Martin's now-abandoned acquisition of Aerojet Rocketdyne as well as a recent Pentagon report raising concerns about consolidation within the defense industry.
Jeff commented that the FTC "certainly is trying to send a message" that sizable proposed defense vertical integration deals, in which a company seeks to buy a firm within its supply chain, will get a "good, hard look" from regulatory agencies.
He also noted that one particularly noteworthy aspect of the FTC's challenge to the Lockheed-Aerojet deal was the agency's "apparent lack of enthusiasm" for using behavioral remedies, such as a consent order, to allow the deal to go through with modifications.
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