"We determined that in light of the FTC's actions, terminating the transaction is in the best interest of our stakeholders," Lockheed Martin CEO James Taiclet said in a press statement issued Sunday.
Taiclet said that the Maryland-based arms maker would continue working with Aerojet Rocketdyne, one of the companies making up the US defence industrial base, as it struggles to recover from the pandemic.
The Federal Trade Commission (FTC) said in January that it had sued to stop the acquisition of the country's last independent supplier of missile propulsion systems over concerns that Lockheed would use its leverage to harm rival defence contractors.