The United Technologies and Raytheon Merger will be the Biggest in the

A United Technologies Corp. sign stands outside the Carrier Corp. facility in Indianapolis Indiana U.S. on Thursday Dec. 1 2016

"Under Secretary of Defense for Acquisition and Sustainment Ellen Lord is engaging with industry leadership to understand the implications and governance as a result of this acquisition", the statement said.

President Trump has poured cold water on a $120 billion merger between United Technologies and Raytheon by suggesting that the deal could make it harder for the Pentagon to negotiate weapons contracts.

But the proposed merger is not expected to affect plans by United Technologies to streamline by spinning off its Otis elevator and Carrier building-systems business into separate companies, expected to happen next year. "Raytheon Technologies will continue a legacy of innovation with an expanded aerospace and defense portfolio supported by the world's most dedicated workforce", said Raytheon Chairman and CEO Tom Kennedy. Only Boeing, with annual sales of $101bn, and Airbus, at $74bn, would be bigger.

President Donald Trump expressed some concern about the latest merger on Monday morning. United Tech's shares were down about 2 per cent at US$129.40, while Raytheon's stock was up 1.7 per cent at US$189.2 in morning USA trade. Trump said in an interview on CNBC.

Trump said competition already has been diminished among defense contractors.

The defense contractor Raytheon - now headquartered in Waltham, Massachusetts - was originally founded in Cambridge in 1922.

"The rationale seems to address (United Technologies') needs more than Raytheon's, unless this was also about simply finding the best partner in a consolidating space", wrote Joseph DeNardi, a defense analyst with Stifel. Their merger would create a one-stop shop that produces and sells everything from radar systems to fighter and passenger planes, a market dominance that could make many big players like Lockheed Martin, Boeing, and General Electric nervous. Two years following the close of the transaction, Hayes will assume the role of Chairman and CEO. And Raythen and United have a combined annual company and customer funded R&D spend of about $8 billion, 7 technology Centers of Excellence, and over 60,000 engineers.

More news: Routine opening victory as Norway see off NIgeria Women's World Cup 2019

The headquarters of the new merged company, called Raytheon Technologies, would be in the greater Boston area.

The net debt of the combined company at the time of closing is expected to be about $26 billion with United Technologies expecting to contribute approximately $24 billion.

The deal faces detailed scrutiny from U.S. competition regulators.

United Technologies chief executive officer (CEO), Greg Hayes, spoke in a statement about the merger.

With this in mind, aerospace firms Raytheon Co. and United Technologies Corp. are joining an ever-growing horde of defense firms that are undertaking mergers or acquisitions to gain heft in an industry that is becoming increasingly consolidated.

"We don't expect DoD to raise strong objections to the deal", though there may be small divestitures where there's overlap with businesses picked up with the Rockwell Collins purchase, analyst Byron Callan of Capital Alpha Partners wrote in a note Sunday.

Related News:

Most liked

Family of another American who died at Dominican Republic resort seeks answers
Immediately, "he started feeling very sick, he had blood in his urine and stool right afterward", his niece tells Fox News . Maria Hudson said she and her boyfriend were going to Punta Cana but axed the trip after reading about the deaths.

Russia Is So Pissed About HBO's 'Chernobyl,' It's Creating Its Own Series
According to the Times , the production will be anchored in the premise that a Central Intelligence Agency operative was at Chernobyl conducting sabotage.

Donald Trump's friendship with Macron withers on the vine
The tree, which came from a forest where 2,000 USA soldiers died in WWI, was taken to quarantine a few days after being planted. It was a symbolic gesture: the tree came from a northern French forest where 2,000 US Marines died during the First World War.

Pilot in NY chopper crash not certified for bad weather: FAA
At the time of the incident, moderate to heavy rain was falling in the city and visibility at Central Park was down to 1.25 miles. The helicopter went down about 11 minutes after taking off from a heliport along the East River, a little more than a mile away.

Three launching United Kingdom 5G network in August
The telecoms company will kick off with a home broadband service in the capital but is also launching mobile services. Note that these networks have more spectrum than that in total, it's just not spectrum that's ideal for 5G use.

Sudan talks to resume as opposition halts strikes
On Tuesday, the Ethiopian mediator between the two sides said that talks on restoring a civilian administration would begin soon. Hollywood star and activist George Clooney urged the global community to take action against the generals behind the crackdown.

Seager makes Giants’ strategy backfire in Dodgers’ 7-2 win
Kenley Jansen (S, 19, 2-1, 3.04 ERA) saved the shutout easily and the Giants were put to bed and handed a series loss. Muncy grounded out and walked without further incident in two other at-bats against Bumgarner.

Uganda confirms first Ebola case outside DRC outbreak
The disease is spread mainly through contact with the bodily fluids of those infected. Results of these tests will be known tomorrow, said Uganda's ministry of health.

UK Prime Minister Theresa May formally steps down as Conservative Party leader
Boris Johnson, the frontrunner to replace May, said the rise of the Brexit Party could open the door to a Corbyn government. Whether it is Johnson, Hunt or one of the other contenders, political experts view Brexit as a poisoned chalice.

Ortiz back in Boston for gunshot wound care
Security camera footage acquired by ABC News shows the gunman coming up behind Ortiz and opening fire at close range. According to ESPN Deportes, police have the suspected gunman and the suspected driver of the motorcycle in custody.

How Build-a-Bear's "Pay-Your-Age" promotion works this year
Build-A-Bear Workshop is trying to make this year's "Pay Your Age" promotion easier on customers and store locations. In the "frequently asked questions" section of the website , the company acknowledged changes in this year's event.

Jon Stewart rails against Congress during hearing on 9/11 Victims Compensation Fund
Some advocates say that while extending the program has taken some time, there are still reasons to be optimistic about the bill. On Tuesday, he told the committee, "It is my goal and my legacy to see that you do the right thing for all 9/11 responders ".

Rory McIlroy shoots 61 to win Canadian Open ahead of US Open
McIlroy added the Canadian Open to his schedule for the first time largely because it was moved to the week before the US Open. Open and the PGA Championship. "I was a little nervous over the six-iron going into the last".

Iran to hand over detained USA resident to Lebanon
He was arrested on the way to the airport and later sentenced to 10 years behind bars on espionage charges in a closed-door trial. Tehran has agreed to hand over a permanent U.S. resident imprisoned for years in Tehran to Lebanese officials, AP reported.

Halep stunned by Anisimova, Barty ousts Keys
However, due to rain washing out an entire day's play on Wednesday, that schedule has been thrown into chaos. That none of the four has ever played in a Grand Slam singles final is icing on the cake.