Raytheon and United Technologies Agree to Massive Aerospace Merger

Raytheon and United Technologies have agreed to an all-stock merger, which would create the second largest aerospace company in the world after Boeing.

Raytheon and United Technologies Agree to Massive Aerospace Merger
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Defense contractor Raytheon and aerospace giant United Technologies have agreed to an all-stock merger this weekend that will create the second largest aerospace company in the world.

Raytheon and United Technologies Will Merge into Raytheon Technologies Corporation

This weekend, Raytheon and United Technologies announced their plans to merge into Raytheon Technologies Corporation, which would become the second largest aerospace company in the world after Boeing, with annual sales expected in the neighborhood of $74 billion. The merger will not include Carrier and Otis, currently units of United Technologies but in the process of being spun-off by the first half of 2020.

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"The combined company, which will be named Raytheon Technologies Corporation, will offer expanded technology and R&D capabilities to deliver innovative and cost-effective solutions aligned with customer priorities and the national defense strategies of the U.S. and its allies and friends," a joint statement from the two companies read.

Approved unanimously by the boards of both companies, United Technologies shareholders will own about 57% of the new company, with Raytheon shareholders owning the remaining ~43%. The merger is expected to be completed in the first half of 2020, once Carrier and Otis are successfully separated from United Technologies.

“Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success. Raytheon Technologies will continue alegacy of innovation withan expanded aerospace and defense portfoliosupported by the world’s most dedicated workforce,” said Tom Kennedy, Chairman and CEO of Raytheon. “With our enhanced capabilities, we will deliver value to our customers byanticipating and addressing their most complex challenges, while delivering significant value to shareowners.”

“The combination of United Technologies and Raytheon will define the future of aerospace and defense,” said Greg Hayes, Chairman and CEO of United Technologies. “Our two companies have iconic brands that share a long history ofinnovation, customer focusand provenexecution. By joining forces, we will have unsurpassed technology and expanded R&D capabilities that will allow us to invest through business cycles and address our customers’ highest priorities. Merging our portfolios will also deliver cost and revenue synergies that will create long-term value for our customers and shareowners.”

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