Washington, D.C. – The American Economic Liberties Project released the following statement in response to news that defense contractor L3Harris intends to purchase the last independent solid fuel maker in the country, Aerojet Rocketdyne.

“L3Harris acquiring Aerojet is the exact kind of deal the Pentagon said is dangerous for national security,” said Lucas Kunce, National Security Director at the American Economic Liberties Project. “A massive defense contractor purchasing the last independent solid fuel rocket maker will only further consolidate the supply chain — and was even a specific example in the Pentagon report of an overly consolidated sector.”

Aerojet was also recently an acquisition target for Lockheed-Martin, a deal that died when the FTC voted unanimously to sue to block the acquisition over defense industrial base consolidation concerns. L3Harris is one of the largest prime contractors, meaning that they work directly with the government.

“It’s a case of deja vu,” added Kunce, “Antitrust enforcers did the right thing last time, blocking an acquisition of Aerojet by a major prime contractor, and they should do it again. To create the competition that the warfighter and the taxpayer desperately need, we should be talking about break-ups, not acquisitions.”

In February, the Department of Defense released a report analyzing consolidation in the defense contracting industrial base. In the report, the Pentagon highlighted how concentration in defense supply chains — like solid rocket fuel — can pose serious risks to national security.

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