United Technologies to combine its aerospace business with U.S. contractor Raytheon to create $120 billion aerospace and defense giant by HarryBrumpton kateduguid
- United Technologies Corp agreed on Sunday to combine its aerospace business with U.S. contractor Raytheon Co and create a new company worth about $121 billion, in what would be the sector’s biggest ever merger.
While United Technologies and Raytheon have some common customers, their business overlap is limited, an argument the companies plan to make once U.S. antitrust regulators start scrutinizing the merger. United Technologies has said it is on track to separate its Carrier air conditioning and Otis elevator businesses, leaving the company focused on its aerospace business through its $23 billion acquisition of Rockwell Collins, which was completed in 2018, and the Pratt & Whitney engines business.
Under the deal announced on Sunday, Raytheon shareholders will receive 2.3348 shares in the combined company for each Raytheon share. The merger is expected to result in more than $1 billion in cost synergies by the end of the fourth year, the companies said. However, Pentagon spending is projected to slow down after an initial boost under Trump. A deal with United Technologies would allow Raytheon to expand into commercial aviation.
FILE PHOTO: United Technologies logo is displayed on a screen at the post where it's stock is traded on the floor of the New York Stock Exchange in New York, U.S., September 5, 2017. REUTERS/Brendan McDermid/File Photo
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Raytheon and United Technologies are reportedly in talks to merge in an all-stock dealAfter Huawei was cut off from sales of American technology, Chinese government officials are warning big technology companies that they will face big consequences for excluding Chinese companies from the sales of American technology.
Read more »
Raytheon and United Technologies in talks to merge: WSJRaytheon Co and United Technologies Corp are in talks to merge in an all-stock d...
Read more »
United Technologies nears deal to merge aerospace unit with Raytheon: sourcesUnited Technologies Corp is nearing a deal to merge its aerospace business with ...
Read more »
United Technologies nears deal to merge aerospace unit with Raytheon: sourceUnited Technologies Corp is nearing a deal to merge its aerospace business with ...
Read more »
United Technologies Strikes Deal to Acquire RaytheonUnited Technologies struck a deal to acquire military contractor Raytheon, continuing the sprawling industrial conglomerate’s transformation into a company focused on aerospace and defense.
Read more »