Raytheon Technologies Wikipedia

The two have a successful joint venture, CFM International, that makes the LEAP engine line. The budget outlook is another reason why hedging on defense might be a good move for Raytheon. And when belts tighten it’s the weapons procurement budget that gets cut first, not personnel costs.

U.S. defense contractors have mostly opted to be pure-play businesses, and while defense spending has climbed sharply over the past two years, and is set to rise again in the next budget, it’s still below the heights reached during the George W. Bush administration, adjusted for inflation. Meanwhile their diversified competitor Boeing has ridden a 5% annual expansion in commercial air travel over the past 20 years to become the world’s dominant aerospace company. Last year, military communication equipment providers Harris Corp and L3 Technologies Inc announced an all-stock merger that, once completed, will create the sixth-largest U.S. defense contractor. The deal with Raytheon could put pressure on General Electric Co, which competes with United Technologies for commercial aerospace clients, to seek scale. It could also push other defense contractors, such as Lockheed Martin Corp, to explore expanding their commercial businesses.

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That would make the new company, which they are planning to call Raytheon Technologies, the second-largest aerospace and defense company in the U.S. by revenue, behind Boeing. The combination would bring together United Technologies booming aerospace business that makes everything from jet engines, cockpit controls and airplane seats with Tomahawk missile maker Raytheon. Raytheon, a Delaware corporation headquartered in Waltham, Massachusetts, is one of the world’s largest defense manufacturers, with significant capabilities in radars and missiles. UTC, a Delaware corporation headquartered in Farmington, Connecticut, produces a wide range of products for the aerospace and defense industries. In order to clear the last holdup from the U.S. government, Raytheon agreed to divest its military airborne radio business, while United Technologies agreed to divest its GPS and space optical businesses.

Wachtell, Lipton, Rosen & Katz is serving as legal advisor to United Technologies.

United Technologies, Raytheon to create $120 billion aerospace and defense giant

With the merger, these companies are combining resources, and not just the financial kind – but also talent, knowledge, and so much more. This will allow for an increase in R&D, with the goal to improve the new offerings for each organization. The new company would be headquartered in the Boston area, the two firms said in the release. Carrier is widely recognized as one of the largest and most reputable HVAC providers in the world, with a presence in the Americas, Europe, Asia Pacific and the Middle East and Africa regions. The market for HVAC is expected to grow to $130 billion by the end of 2020, primarily due to increasing demand in developing countries as well as developed European countries that have seen unprecedented heat waves in recent years. Unlike the newly combined Raytheon Technologies, which operates in highly cyclical sectors, Carrier and Otis represent more stable areas of the market.

• Here is the information needed for Raytheon (RTN) shareholders to complete the merger.
• With the advent of Raytheon Technologies Corporation, as a result of this merger, exciting times await the defence and aerospace industry.
• ‘I am exceptionally proud to lead this new organization and the talented people who serve our nation, its allies and our commercial aerospace customers so well,” said Greg Hayes, chairman and CEO of UTC, in a news release.
• We will be working diligently in the days and weeks ahead to make sure that the details of the transaction are presented to and fully understood by all shareholders,” United Technologies said in a statement.
• In a deal that is one of the largest transactions in the industry’s history (which is quite a feat in an industry that is full of mergers and acquisitions) – why would these companies feel the need to combine?
• (Reuters) – United Technologies Corp agreed on Sunday to combine its aerospace business with U.S. contractor Raytheon Co and create a new company worth about $121 billion, in what would be the sector’s biggest ever merger.

Information about United Technologies’ directors and executive officers is available in United Technologies’ proxy statement dated March 18, 2019, for its 2019 Annual Meeting of Shareowners. Information about Raytheon Company’s directors and executive officers is available in Raytheon Company’s proxy statement dated April 16, 2019, for its 2019 Annual Meeting of Shareholders. Investors should read the joint proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from United Technologies or Raytheon Company as indicated above. The combined company will have approximately $74 billion in pro forma 2019 sales.

Raytheon and United Technologies Aerospace Businesses to Combine in Merger of Equals

Relocating “increases agility in supporting U.S. government and commercial aerospace customers and serves to reinforce partnerships that will progress innovative technologies to advance the industry,” Raytheon said. Also serves as a convenient travel hub for global customers and employees, it said. Headquartered in Waltham, Mass., Raytheon Technologies is a large aerospace and defense company with approximately $74 billion in pro forma 2019 net sales and a global team of 195,000 employees, including 60,000 engineers and scientists.

The merger of United Technology’s aerospace divisions and Raytheon is now expected to close the morning of 3 April after UTC’s spin off of its non-aviation businesses Carrier and Otis. The regulatory process required the disinvestment of Raytheon’s military airborne radios business and UTC’s military Global Positioning System (GPS) and Space Optical Systems businesses, which were all completed following the merger. With an economic downturn in progress in the U.S., most companies are seeing their share prices plummet. Raytheon and United Technologies, https://forexhero.info/page/2/ which merged on April 3, are no exception, especially as their operations are mainly in the aerospace and defense sectors, which follow the strength of the economy and largely depend on government spending. The new $100 billion-plus company combines Raytheon’s large portfolio of radars, sensors, space, munitions, and hypersonics work with UTC’s Pratt & Whitney engines enterprise and other defense business. The new entity, to be called Raytheon Technologies, will be the United States’ second-largest defense contractor, after Lockheed Martin.