Lockheed Martin (LMT.US), the US defense giant, will manufacture a prototype of the next generation 5G 'OSIRIS' network for the US Marines. The contract signed with the Department of Defense is worth $19.3m and is prioritised for immediate execution.
The contract is part of Lockheed's programme known as 5GMIL. It aims to integrate 5G technology in defense, space and virtual space. The development of technology towards 5G is well known and was addressed in the Bank of America's 2021 report. Subcontractors of the project implemented by Lockheed will be companies such as Intel and Radisys. It is worth emphasising that the company is working on a prototype, However, if the project were successful, it would provide the company with a lucrative contract with the US military.
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Open account Try demo Download mobile app Download mobile appMeanwhile the long-negotiated and eagerly awaited takeover of rocket engine manufacturer Aerojet Rocketdyne by Lockheed Martin's shareholders has recently failed to materialize. Lockheed's proposal amounted to USD 4.4 billion. Aerojet Rocketdyne's financial health has not been the best in recent times, but the company continues to provide strategic products for the defense and space industries that have so far failed to find replacements and external suppliers.
The acquisition has been blocked by the Federal Trade Commission (FTC) amid concerns that Lockheed Martin's monopoly in this part of the market could potentially hurt other defense contractors. However, Lockheed Martin is not giving up, which may indicate that a takeover of Aerojet is still under consideration.
Meanwhile, China yesterday imposed sanctions on US arms manufacturers Lockheed Martin and Raytheon over Taiwan arm sales.
Lockheed Martin (LMT.US) stock witnessed a local correction in recent days, however buyers managed to halt declines around support at $381.00 which is marked with lower limit of the 1:1 structure, upward trendline and 23.6% Fibonacci retracement of the last upward wave. Stock price rose slightly in the premarket and if current sentiment prevails upward move may accelerate towards recent high around $398.40. Source: xStation5
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