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An agreement that would create a company with a market capitalization of $ 166 billion could be announced in the coming days
United Technologies is in talks to merge its aerospace unit with US military subcontractor Raytheon as part of an agreement that would create a global defense giant, the source said. the Wall Street newspaper.
If the talks advance, the transaction while shares could be announced in the coming days, reported Saturday the newspaper citing a person familiar with the file. The companies have a combined market value of $ 166 billion (Dh609 billion). A successful deal would create the second-largest Western aerospace defense company, behind Boeing but ahead of Airbus, according to Bloomberg Intelligence.
United Technologies chief agent Greg Hayes is expected to lead the new company, while Thomas Kennedy, chairman of Raytheon, becomes chairman of the merged entity, Newspaper reported.
The agreement would create a powerful power station that will offer products ranging from Patriot missiles to engines equipped with the Lockheed Martin F-35 fighter.
The merger would have no impact on the planned spin-offs at United Technologies, according to the Newspaper. The company had already considered selling its Carrier air-conditioning business and its Otis elevator division.
The agreement with Raytheon could put pressure on its rival General Electric, which is competing with United Technologies for customers in the commercial aerospace sector, so that it also seeks to gain a foothold.
Updated: June 9, 2019 11:30
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