Aerojet Rocketdyne makes $2 billion offer to buy ULA

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The competition heats up: Rocket engine-maker Aerojet Rocketdyne has reportedly made a $2 billion offer to buy the rocket company United Launch Alliance (ULA), a partnership of Boeing and Lockheed.

If this deal goes through, it will put the squeeze on Jeff Bezos’s Blue Origin, which presently has a contract to build rocket engines for ULA. Aerojet Rocketdyne had wanted that contract and had lost out. If they buy ULA, they could then kick Blue Origin out and take on the contract themselves.

I am honestly not sure what to make of this whole thing, however. It could be that Aerojet, having lost a number of contracts and faced with a significant lose in business, has decided it needs to become a rocket company to survive. It could also be that the corporate heads of ULA have decided that the company’s effort to replace its Delta and Atlas rockets with Vulcan is too risky, and they are better off taking the cash and running.

Or it could be any number of other reasons. We shall have to wait and see how this plays out.

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