While these days, most people’s concern about mergers and acquisitions activity comes from the ongoing Microsoft (NASDAQ:MSFT) and Activision Blizzard (NASDAQ:ATVI) deal, there’s another deal going on that may be even bigger as far as the aerospace industry goes. Lockheed Martin (NYSE:LMT) recently tried to interject in the upcoming deal between L3Harris Technologies (NYSE:LHX) and Aerojet Rocketdyne (NYSE:AJRD) for about the reason you’d expect.
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Lockheed Martin asserts that the deal between L3Harris and Aerojet would, ultimately, create an unfair competitive environment. As noted by Lockheed Martin COO Frank St. John, it went to L3Harris to insist on some “guarantees” that certain basic supply elements would still be available. Things like rocket motors, for one, as well as protections for intellectual property and even pricing. L3Harris didn’t offer up any guarantees and, according to a Reuters report, didn’t offer up much in the way of response at all.
That, in turn, led to Lockheed Martin taking its case directly to the Department of Defense, insisting that, without those guarantees, it would need some kind of government help to ensure that its supply lines remain in place.
Lockheed Martin is up slightly despite all this, however. With two Buy ratings, two Sell, and 10 Hold, it’s not a surprise most investors are in a holding pattern right now. But with an average price target of $498 per share, Lockheed Martin stock offers a modest 8.32% upside potential.
