Defense companies United Technologies and Raytheon would negotiate to merge

The defense subcontractor, Raytheon, would be in advanced discussion to merge with United Technologies, according to a report by The Wall Street Journal. The agreement could be announced as early as Monday.

At the end of last year, the WSJ announced that United Technologies plans to split into three separate companies by 2020, ceding the Otis Elevators and Carrier divisions to focus more on specific sectors. The merger talks will have no impact on these projects, and the newspaper says the new company will cost more than $ 100 billion, just behind Boeing.

Raytheon is a leading US supplier of defense equipment that produces a range of products for the military sector – communications and sensor systems for aircraft and satellites, missile defenses, semiconductors, and more. United Technologies also manufactures a wide range of products, lifts and air conditioners (at least until 2020), as well as aircraft engines for military aircraft (for F-15 and F combat aircraft) -35) and civilians (for Airbus and Gulfstream). ). Last year, United Technologies acquired Rockwell Collins, an entrepreneur in the aviation and defense industry, for $ 30 billion.

If the agreement were reached, it would bring together two defense industry companies with vast (but not very overlapping) experience and benefiting from technology sharing. The increase in the size of society could help it cope with any recession in its sector WSJ According to analysts, the Pentagon will likely reduce its purchases of aircraft, missiles and other technologies, at least for the next two years.