Raytheon and United Technologies are in the process of merging

Raytheon and the large aerospace company of United Technologies are in the advanced negotiation phase to regroup in a transaction entirely in actions which would strengthen the consolidation of the sectors of aviation and the defense, according to a source close to the file.

The companies have a combined market value of nearly $ 166 billion.

The agreement would give Raytheon, a defense contractor, exposure to the booming commercial aerospace sector thanks to the United Technologies unit, which manufactures high-value reactors and competes with General Electric, via post orders. flight seats, aircraft seats and cabin interiors. This would diversify the Raytheon defense component supplier and consolidate the defense and aerospace companies that supply giants like Airbus and Boeing.

In November 2018, United Technologies announced the split of its Otis elevator business and its Carrier air conditioning business into separate companies. The remaining aerospace business would be combined with Raytheon, said the person. United Technologies CEO Gregory Hayes would become the CEO of the merged company, which would be called Raytheon Technologies, and Raytheon's CEO, Thomas Kennedy, would become chairman, according to the same person.

The deal, a so-called peer-to-peer merger, is expected to be completed in 2020, when United Technologies hopes to complete the separation of the silo and air-conditioning business, said the manager.

The deal, which could still collapse, could be announced as early as Monday, the source said. The agreement was reported earlier by the Wall Street Journal.

Companies did not immediately return requests for comments.

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