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NEW YORK – Raytheon Co. and United Technologies Corp. are in talks to create a giant of the aerospace and defense industry, reported the Wall Street Journal, citing people close to the case.
The deal on the shares could be announced in the coming days, the newspaper said. The companies have a combined market capitalization of $ 166 billion. The market value of United Technologies is twice that of Raytheon.
Such an agreement would have no impact on the benefits expected by United Technologies from the operations of its Otis and Carrier elevator systems, the Journal said.
According to the report, United Technologies chief executive Greg Hayes is expected to lead the merged company, while Raytheon chairman Thomas Kennedy will become chairman.
Shares of United Technologies are trading at 16.6 times the estimated profit, slightly faster than the 16 times for Raytheon. Both stocks rose more than 20% this year, outpacing the 15% gain in the S & P 500 index.
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