A military defense and industrial component manufacturer has withdrawn its attempt to acquire a rival company after the Justice Department threatened a federal lawsuit.

The deal would have eliminated competition, increased supply chain risks and left the U.S. Department of War with just one source for “critical products,” the department said Monday.

The two manufacturers – TransDigm Group Inc. and Stellant Systems Inc. –compete to supply and fix components for the U.S. Navy’s Aegis Combat System and the Air Force’s F-16 fighter jets.

TransDigm, headquartered in Cleveland, Ohio, focuses on developing and manufacturing engineered aerospace components. Stellant Systems, headquartered in Torrance, California, manufactures microwave devices for airborne, satellite and ground-based communications and radar.

“Our decision to put a stop to this deal preserved critical competition that protects American taxpayers and war-fighters,” said Stanley, an associate attorney general for the department. “This Justice Department will rigorously investigate and challenge mergers that create monopolies and harm competition.”

The department told both companies that it would file a federal lawsuit to block the transaction.

“Maintaining a robust, diverse, and competitive defense industrial base is vital to preventing single-source vulnerabilities and ensuring our warfighters are equipped with superior capabilities at the best value to the American taxpayer,” Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment, said.

Katherine Pugh is a reporter for Just the News. Follow her on X for more coverage.