Aerospace companies Woodward Inc. and Hexcel Corp. have called off the Fort Collins merger they announced in January.

The Coloradoan reports that the companies decided to terminate their merger agreement due to the financial uncertainty caused by COVID-19.

"Although we are disappointed with this outcome, we are confident that this is the right decision," said Woodward CEO and president Tom Gendron and Hexcel CEO and president Nick Stanage in a joint press release. "We continue to be hopeful that our two companies will find opportunities to collaborate on next-generation platforms in the future for the benefit of our customers."

Woodward implemented a hiring freeze, reduced salaries, laid off and furloughed employees, and eliminated annual bonuses on Monday (April 6) in order to prepare for future financial uncertainty.

Gendron, who was planning to retire next year, is taking a 25% salary reduction and has tabled his retirement plans.

Had the two companies been able to continue with the merger, they would have been one of the largest aerospace and defense manufacturers in the world, with operations on five continents.

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