Raytheon Co. makes the Patriot missile-defense system and the Tomahawk cruise missile. Leaders prepare for a rebuilding 2021; This chart from UTC and Raytheon shows how the merged company would stack up against other aerospace and defense companies, based on 2018 sales. United Technologies owns Pratt & Whitney Co., a leading manufacturer of jet engines for Boeing and Airbus Group Inc., as well as for Lockheed Martin Corp.'s F-35 "stealth" fighter. The combined entity will be known as Raytheon Technologies, and will have revenues of $74 billion and a valuation of $166 billion. Analysts said the deal makes sense because the two companies' core businesses don't overlap greatly, meaning they're not likely to run into regulatory roadblocks. Raytheon and UTC have a combined market value of close to $166 billion. United Technologies makes engines for Lockheed Marti Corp.'s F-35 stealth fighter, pictured. , April 3, 2020, 5:57 AM PDT. UTC's headquarters are based in Farmington, and the company employs nearly 20,000 people in the state at Collins Aerospace and Pratt & … Raytheon completes merger with United Technologies. In what they termed a "merger of equals," the companies said in a joint statement that the creation of Raytheon Technologies Corp. was approved unanimously by both companies' boards and was expected to close in the first half of 2020. While commercial aircraft sales have been booming during an unprecedented 13-year surge in orders that has left Airbus and Boeing with backlogs of more than 13,000 jetliners, analysts have cautioned that slowing air traffic could force aircraft makers to reverse production increases. Under the Trump administration, defense budgets have soared as U.S., European and other manufacturers have boosted production. The Journal first reported Saturday that the two sides were nearing a deal. A third of the two companies' aerospace and defense revenues last year -- some $25 billion -- came from the Pentagon. The deal would be one of the largest of the year and isn't expected to attract significant antitrust scrutiny, analysts say, because UTC and Raytheon don't compete against each other in most of their markets. Trending Now. The tie-up would complete a radical transformation at UTC, a once sprawling conglomerate that already plans to spin off its Otis elevator and Carrier building-systems businesses into separate companies. Spending increases are now slowing to low single-digit increases, and much of the additional money is being directed at refreshing U.S. nuclear forces. UTC’s current leader, Greg Hayes, will serve as CEO of the merged company, with Raytheon CEO Tom Kennedy as executive chairman for two years. Raytheon and UTC announced in June 2019 plans to officially merge into a new entity called Raytheon Technologies Corporation, with the deal at the time expected to … Today's announcement follows the recent selection of Anthony "Toby" O'Brien as chief financial officer for the new Raytheon Technologies. Both Raytheon and UTC shareholders are scheduled to vote on the merger in separate votes Oct. 11. The new company will be named Raytheon Technologies Corp., and executives on Sunday called the deal, which doesn't include a takeover premium, a merger of … UTC has said the spinoffs will take place in the first half of next year. April 3, 2020. UTC and Raytheon executives have said the merger is expected to be completed in the first half of 2020. There were 2-large merger announcements which included United Technologies and Raytheon merging and... Related searches. The proposed deal intensifies the consolidation in the aerospace and defense industry as plane makers seek better terms from suppliers and the Pentagon puts more pressure on contractors to cut costs and invest more of their own money in new technologies such as space systems and cybersecurity. UTC and Raytheon are both well positioned in the F-35 program, where production is increasing. "With a strong balance sheet and robust cash generation, Raytheon Technologies will enjoy enhanced resources and financial flexibility to support significant R&D and capital investment through business cycles," they said. Throughout 2019 UTC’s stock price has risen by 25.5%. Comments: (319) 398-8366; thomas.friestad@thegazette.com Thomas Friestad UTC, Raytheon merger raises more questions than answers. The rationale for the split was clear in the company's first-quarter results as the aerospace portions of its business posted strong growth. Byron Callan, a defense analyst at Capital Alpha LLC., said the proposed deal reflected the likely slowing of military spending increases and the need for companies to boost their investment in new technologies. When the merger is … In-depth news coverage of the Greater Boston Area. Raytheon and United Technologies announced on Sunday that they will merge, creating a behemoth American aeronautics and defense company. The deal was described as the largest ever in the defense and aerospace industry, far eclipsing United Technologies' purchase of Rockwell Collins, a major maker of avionics and aircraft parts, for $30 billion in 2017. > UTC, Raytheon merger raises more questions than answers . The companies could mutually benefit from their separate expertise, she said, such as leveraging UTC's expertise in global positioning systems across Raytheon's missile programs. Before World War II, the government relied on a mix of federally-funded arsenals and civilian companies to provide war materiel, though after the war that trend shifted to private industry providing the bulk of the Pentagon's needs, according to a report on industry consolidation released earlier this year from the Center for Strategic and International Studies, a Washington-based think tank. It has invested heavily in recent years ahead of the recent uptick in Pentagon spending, and has the biggest export business among the five largest U.S. defense contractors. Taleb says Musk’s comment on coronavirus panic being ‘dumb’ is what’s dumb, Rep. Marjorie Taylor Greene gets 12-hour Twitter suspension for ‘multiple’ violations, GitHub admits error in firing Jewish employee who warned colleagues to ‘stay safe’ from Nazis amid Capitol riot, Carl Icahn nixes charity bid to blow up Trump’s former Atlantic City casino, Biden’s stimulus plan for schools leaves one question unanswered and why you need to wear a mask if you already had COVID-19, These copper-exposed stocks can surge in 2021 as tailwinds line up, Morgan Stanley says, Here's what Biden's clean-energy plan means for the solar industry, Moderna and SpaceX highlighted by a fast-growing U.S. fund traded in London. The combined entity would be split roughly 50/50 between commercial and defense sales, though military is likely to shrink as a proportion as UTC's Pratt & Whitney division ramps up deliveries of its latest jetliner engines. Raytheon is headquartered in Waltham, Massachusetts, and UTC is based in Farmington, Connecticut. 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