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A recent analysis from Arizona State University estimates $ 2 billion the annual impact of the missile manufacturer on the Arizona economy. Hannah Gaber / azcentral.com

Raytheon and United Technologies are in talks for a merger of all the shares, according to the the Wall Street newspaper.

Raytheon Missile Systems, a subsidiary of the international defense and aerospace company, is one of the largest employers in southern Arizona.

The agreement will not affect the expected benefits to United from the Otis and Carrier elevator systems operations, the Newspaper reported.

The companies have a combined market capitalization of $ 166 billion, the report says. The announcement of an agreement could occur in a few days if negotiations continue.

Raytheon's head office is located in Waltham, Massachusetts. Last year, it embarked on a $ 550 million expansion of the Tucson facility, which included a new laboratory, missile tests and offices.

The company currently employs around 12,000 people in Tucson, thanks to an expansion of 2,000 workers last year, receiving a $ 5 million grant from the state.

According to an analysis by Arizona State University, Raytheon would have an estimated annual economic benefit of $ 2.1 billion for the state.

Based in Farmington, Connecticut, United Technologies shares are trading at 16.6 times estimated earnings, slightly ahead of Raytheon 16 times, according to Raytheon. Bloomberg. Both stocks rose more than 20% this year, outpacing the 15% gain in the S & P 500 index, he said.

Editor Ryan Randazzo contributed to this report.

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