[ad_1]
Raytheon Co., one of the world's largest defense subcontractors, and aerospace giant United Technologies Corp. Sunday announced the merger of all their actions to create the second largest defense and aerospace company in the United States, behind only Boeing Co.
In what they called a "merger of equals", the companies said in a joint statement that the creation of Raytheon Technologies Corp. had been approved unanimously by the boards of directors of both companies and that it should be closed in the first half of 2020.
United Technologies chief executive Greg Hayes will be the managing director of the merged company, and Raytheon chairman Thomas Kennedy will be president, they said.
Raytheon manufactures the Patriot missile defense system and the Tomahawk cruise missile. United Technologies owns Pratt & Whitney Co., a leading jet engine manufacturer for Boeing and Airbus Group Inc., as well as Lockheed Martin Corp.'s F-35 stealth fighter.
This agreement has been described as the most important ever achieved in the defense and aerospace industry, far exceeding the purchase by United Technologies of Rockwell Collins, a major manufacturer of aerospace products. avionics and aircraft parts, for $ 30 billion in 2017.
Raytheon and United Technologies projected that the combined company would achieve a business turnover of about $ 74 billion by 2019, which would put it right behind Boeing, with sales of about $ 101 billion. last year.
"With a solid balance sheet and strong cash generation, Raytheon Technologies will benefit from increased resources and financial flexibility to support large R & D and capital investments throughout the business cycle." , they said.
Analysts said the deal made sense, as the two companies' main businesses do not overlap much, which means they will not run into regulatory hurdles.
Byron Callan, defense analyst at Capital Alpha Partners, wrote Sunday in a note to investors obtained by the specialist publication Defense Times, "it does not seem that major problems arise, lead to objections from the Pentagon."
Raytheon is headquartered in Waltham, Mass., And UTC, in Farmington, Connecticut. The two companies said Raytheon Technologies would move to the Boston area, a move that is troubling Senator Richard Blumenthal, a member of the Armed Services Committee, D-Conn.
"This huge potential merger raises very deep and serious questions and doubts about its impact on the workforce and the Connecticut economy, as well as our national security and defense," he said. Blumenthal in a statement.
A spokeswoman for UTC told NBC Connecticut that the new company would continue to invest in and be present in Connecticut.
[ad_2]
Source link