CapForum Reports FTC Has Monopsony Concerns about Proposed Lockheed Aerojet Acquisition

If you are a high-skilled worker focused on missile and rocket technologies at Lockheed or Aerojet a potential acquisition of the latter, by the former, would not be good news. When an acquisition means that going forward, there is only one employer who will pay you for your services, well, good luck asking for that raise in December. Understand, both companies each employ about 1000 people in Camden, Arkansas.

Thankfully, according to the financial services publication CapForum, the FTC staff “is poring over employment data by a third party to determine if the merger would lessen competition for workers as labor monopsony has in recent years emerged as a growing bipartisan concern that Lina Khan has targeted as a top enforcement priority.”

In case you aren’t familiar with a monopsony, here is how it is defined (according to Google): a market situation in which there is only one buyer.

According to CapForum, there has been only a handful of FTC actions taken over monopsony concerns. But, CDA, and other advocates for more aggressive antitrust enforcement were pleased with the selection of Lina Khan as FTC Chair, because we believe it is time for a more robust antitrust enforcement by the federal government.

CDA remains steadfast that the Biden administration’s first big test on antitrust enforcement is the proposed Lockheed/Aerojet acquisition and we are hopeful the FTC will take steps to block this deal which will reduce competition and innovation in the missile technology sector.