President Trump fears the merger between United Technologies and Raytheon will kill competition

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In an interview Monday, Trump expressed concern over the merger that would create an aerospace and defense power plant, saying it could kill competition.

"I'm a little concerned about United Technologies (UTX) and Raytheon (RTN), "said the president during a telephone interview on CNBC's" Squawk Box. "

Trump has expressed concern over the merger of many defense companies in the past, adding that it is more difficult for the United States. negotiate on products such as aircraft when there are fewer companies to choose.

The UTC-Raytheon merger asks the question: "Does this remove more competition?" Trump said. He added that, to his knowledge, there was some overlap between the products of the companies.

But Gregory Hayes and Thomas Kennedy, respectively CEO of United Technologies and Raytheon, said in a subsequent interview with CNBC's "Squawk Box": there is no product overlap, adding that there is nothing anti-competitive in the partnership.

Market analysts said they did not expect any regulatory or antitrust issues with the merger.

"We do not see any opposition to the deal from DoD or other regulators," Stifel analysts Joseph DeNardi and Jonathan Ladewig wrote.

The companies announced that they would regroup to form a "peer-to-peer merger" on Sunday night. The combined companies, calling themselves Raytheon Technologies Corporation, will generate $ 74 billion in revenue. Their combined market value is about $ 166 billion.
The merger comes just months after UTC announced the split of its Otis Elevator business and Carrier Building Systems division, leaving the remaining company focused on aerospace.

UTC and Raytheon did not immediately respond to calls for comment.

UTC shares lost 1% shortly after the market opened on Monday, while Raytheon shares rose about 1%.

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