Raytheon and United technologies merger on the cards

Raytheon and United Technologies have entered into an agreement which will see them merge. The combined company will be known as Raytheon Technologies Corporation and will offer technology and R&D capabilities for the defense industry.

The merger of Raytheon with United Technologies will include Collins Aerospace and Pratt & Whitney and exclude Otis and Carrier. The latter companies are expected to separate from United Technologies in early 2020.

“Today is an exciting and transformational day for our companies and one that brings with it tremendous opportunity for our future success. Raytheon Technologies will continue a legacy of innovation with an expanded aerospace and defense portfolio supported by the world’s most dedicated workforce,” said Tom Kennedy, Raytheon Chairman and CEO. “With our enhanced capabilities, we will deliver value to our customers by anticipating and addressing their most complex challenges, while delivering significant value to shareowners.”

Raytheon in its press release has said that the approximate value of the combined company in pro forma 2019 sales will be $74 billion. Following the merger, the Raytheon shareholders are to receive 2.3348 shares in the combined company. The merger is expected to be completed in the first half of 2020.