Raytheon and United Technologies to Merge in Aerospace Mega-Deal

Raytheon Company (NYSE: RTN) and United Technologies Corp. (NYSE: UTX) on Sunday announced they will merge in an all-stock deal, creating an aerospace-defense giant.

The combined company, to be named Raytheon Technologies Corporation, will become the second largest aerospace and defense company in the U.S., behind Boeing. The companies said it will generate combined annual sales of about USD 74 Billion. Together, United Technologies and Raytheon are currently worth around USD 166 Billion in market value.

“The combination of United Technologies and Raytheon will define the future of aerospace and defense,” said Greg Hayes, United Technologies Chairman and CEO. “Our two companies have iconic brands that share a long history of innovation, customer focus and proven execution.” United Technologies provides mainly commercial plane-makers with electronics, communications and other equipment. Raytheon is best known as the maker of the Tomahawk and the Patriot missile systems.

As part of the deal, Raytheon Technologies Board of Director will include 15 members, eight directors from United Technologies and seven from Raytheon. The two firms said the new company would be headquartered in the Boston area. 

Following the transaction’s expected close in the first half of 2020, United Technologies shareholders will own about 57% of the combined business.

President Donald Trump on Monday voiced concerns that a merger between the two companies would hurt the U.S. government’s ability to negotiate defense contracts. “I just want to see competition. They’re two great companies, I love them both. But I want to see that we don’t hurt our competition,” he said, according to CNBC.

3 Comments
  1. Charlie Bilello 2 weeks ago
    Reply

    $RTN has served #dividend investors well over the years. Now with the upcoming #merger with $UTX, the combined company expects to return $18.0 to $20.0 billion to shareholders within three years of the deal’s completion.

  2. Ben Childs 2 weeks ago
    Reply

    $RTN I’m short. 186 target let’s see how it goes

  3. Zack Guzman 2 weeks ago
    Reply

    If you’re considering buying #Raytheon this morning, I was up bright and early looking at this deal more in detail and it appears $RTN is fully valued at around $187.36 / share. If you bought at the open, you may have to wait a bit. #Trading #Options #Mergers

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