Economy

The United Technologies and Raytheon Merger will be the Biggest in the

The United Technologies and Raytheon Merger will be the Biggest in the

The resulting company would be worth about $121 billion and have an annual revenue of $74 billion.

The new defense and aerospace company would be second only to Boeing in the USA, according to the most recent Forbes 500 rankings by annual revenue.

Raytheon is best known for its Patriot air defense systems, which gained fame during the first Gulf War, and its Tomahawk cruise missiles, often the first weapons fired from U.S. navy ships in recent conflicts.

The merged company will be called Raytheon Technologies Corporation.

The merger remains subject to regulatory approvals and is expected to close in the first half of 2020. It becomes one big, fat lovely company but I have to negotiate, meaning the United States has to buy things and does that make it less competitive? "It will offer expanded technology and R&D capabilities to deliver innovative and cost-effective solutions aligned with customer priorities and the national defense strategies of the USA and its allies and friends", the news release said. He added that both companies are "great" but said he anxious that the merger would "take away more competition".

Industry analysts saw fewer advantages for Raytheon, but noted that it has ensured that it is not left behind in the push to grow bigger in aerospace and defense. United Technologies provides plane makers with electronics, communications and other equipment, while Raytheon primarily supplies the US government with military aircraft and missile equipment.

The deal will be reviewed by either the Justice Department or the Federal Trade Commission to ensure that it complies with antitrust law.

Hayes will become the CEO of Raytheon Technologies. It's estimated that the merger will generate robust free cash flow and strengthen the balance sheet, thereby helping the new company to enhance shareholder wealth and increase investments.

Meanwhile United Technologies shareowners would own about 57 per cent and Raytheon shareowners would own approximately 43 per cent of the combined company on a fully diluted basis. Mr Hayes will ascend to both roles three years after the deal closes. Raytheon shareholders will own the remaining stake, and Raytheon CEO Tom Kennedy will be named executive chairman.

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United Technologies, the parent company of Pratt & Whitney, is now headquartered in Farmington. "And since there's no overlap, I don't see any other regulators creating problems either".

Monday, US President Donald Trump told business news network CNBC that while he hopes the merger goes forward, he is concerned about how the tie-up could impact competition.

Trump said: "When I hear they're merging, does that take away more competition?" "It's hard to negotiate when you have two companies and sometimes only one bid".

"Does [the merger] make it less competitive?"

On a conference call Monday morning, Hayes promised "Raytheon Technologies will have a strong presence in CT for years to come".

But Shanahan may be kept well-informed on the issues involved because Eric Chewning, his chief of staff, served as head of the Defense Department's industrial base and mergers review office from October 2017 to January. A deal with United Technologies would allow Raytheon to expand into commercial aviation.

Raytheon Technologies will be based near Boston.

"I hope the Raytheon deal, I hope it can happen".

Conversely, United Technologies could benefit from reducing its exposure to commercial aerospace clients amid concerns that the rise of worldwide trade protectionism will suppress economic growth and weigh on the flow of goods through air traffic.