WASHINGTON, June 10 Aerospace company GenCorp
Inc has been given U.S. antitrust approval to buy rocket
engine manufacturer Rocketdyne at the request of the Defense
Department, the Federal Trade Commission said on Monday.
The FTC said that it approved the deal, even though it would
give GenCorp a monopoly in a certain missile defense segment,
because the Department of Defense wanted to see the transaction
United Technologies Corp agreed to sell the
Rocketdyne space unit to GenCorp Inc last July for $550 million.
The FTC had said in a June 3 letter that it had found that
the proposed transaction would create a monopoly in the market
for very high-performance, small pressure-fed liquid propulsion
systems called "liquid divert and attitude control systems,"
which are used in missile defense interceptors.
The Department of Defense, however, urged against stopping
the deal, saying that the inputs were critical to the nation's
It urged the FTC to allow the deal because of "highly
unusual national security circumstances," according to a letter
to the FTC dated June 6.
Rocketdyne, the world's largest manufacturer of
liquid-fueled rocket propulsion systems, was one of three units
United Technologies Chief Executive Louis Chenevert put on the
block in an effort to fund the $16.5 billion takeover of
Goodrich Corp in 2012.
United Technologies sold Rocketdyne for $150 million less
than it paid for it more than seven years ago. It had purchased
Rocketdyne from Boeing Co for $700 million in cash.