United Technologies + Raytheon: Becoming the #2 Player in Aerospace & Defense

A United Technologies Raytheon merger has long been speculated on by analysts and investors

United Technologies Corporation is poised to combine its aerospace business with Raytheon in a merger that would create a giant with a market value of more than $100 billion.

"I think once [President Trump] understands the benefits of this merger in terms of what it's going to do to reduce costs to the government, what it's going to do to improve the technology of the USA government and our defense profile, and what it's going to do for jobs in this country, I think he's going to be supportive, as he has been for both companies over the course of this administration", United Technologies Chairman and CEO Greg Hayes told CNBC soon after the president called in. 68% of Raytheon's revenue comes directly from USA government contracts with an additional 13% going to foreign military sales through the USA government, totaling 81% of Raytheon's top-line being related to the United States government. The merger is expected to be wholly in the first half of 2020 once United Technologies has completely separated from Otis and Carrier. Companies have argued that they need greater scale to compete and spend on research and technology. United Technologies reportedly employs 240,000 and is presently headquartered in Farmington, CT.

"I want to see that we don't hurt our competition", Trump said in an interview with CNBC.

"UTX also gets to de-lever with Raytheon's balance sheet and Raytheon holders get compensated in return".

Hayes will become the CEO of Raytheon Technologies.

"Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success".

More news: Democrats push ahead with hearings on Mueller's Russian Federation probe

"Our two companies have iconic brands that share a long history of innovation, customer focus and proven execution", said United Technologies Chairman and CEO Greg Hayes in a statement. "It becomes one big fat handsome company, but I have to negotiate, meaning the United States has to buy things".

We have reached out to Raytheon Tucson for a response to this report.

In Northrop Grumman's purchase of Orbital ATK previous year, the FTC noted in a statement accompanying the approval that it worked closely with the Defense Department on the review, and had the department appoint someone to oversee compliance of the consent decree.

The combined companies will have total sales of approximately 74 billion dollars in 2019. United Technologies' subsidiaries tend to operate as parts suppliers for other companies' prime contracts, and not as defense platform providers; Pratt & Whitney builds the engine that powers Lockheed Martin's F-35 Joint Strike Fighter, for example. The United Technologies-Raytheon merger would be the biggest ever in defence. Another crucial customer is the U.S. Department of Defense.

Updated 6/9/19 at 9:00 PM with information about the location of the new company's headquarters.

Related News:



Most liked

Bushwick Bill Not Dead, Despite Early Reports
Many of rap's current stars, from Jeezy and Lil Wayne to Juice WRLD and 21 Savage, have cited Geto Boys as an influence. Citing a statement from his publicist, Billboard said Bill died on Sunday evening at a Colorado hospital.

Pelicans Provide Framework For Anthony Davis Trade Package
For now, a Davis trade looms as a premium free-agent recruiting tool for those big-market teams engaged with New Orleans. Boston looms as the wildcard to offer the most overwhelming trade package , but they are in a holding pattern.

E3 2019: Elder Scrolls
If you're a die hard Doom fan, you'll soon be able to pre-order a pretty wonderful looking Collector's Edition. Doom Eternal got more stage time this year, and a release date: November 22 , 2019.

Trump defends tariff threat against Mexico, calls it 'beautiful thing'
Could the USA soon reach a trade deal with China? "You know, we're leading in everything." he said. They want to make a deal much more than I do, but we'll see what happens".

FIFA 20 Coming in September with FIFA Street-Style Volta Football
The FIFA 20 portion of that livestream kicks off on Saturday, June 8 at 11 AM PT / 2 PM ET / 7 PM BST (that's 4 AM AET on June 9). After all, Federation Internationale de Football Association 19 was one of the most optimized PC games of 2018.

Favourite Johnson pledges tax cut as race to succeed May starts
A common theme among the contenders was that future negotiations should be carried out by politicians rather than officials. Instead, he criticized drug use among people who, like the environment secretary, talk about their concern for the Earth.

Trump calls John Dean a 'sleazebag' ahead of testimony
Besides Dean, two former USA attorneys and a legal scholar are scheduled to appear. "But they want a Redo, or Do Over". The Mueller report, issued in March, outlined several "episodes" in which it said Trump may have done the same.

Justin Bieber challenges Tom Cruise to UFC cage fight
Perhaps Bieber simply watched a movie starring Cruise, saw a fight scene, and thought, "Hey, I could take him". White did not immediately respond on Twitter and Cruise's representatives have been contacted for comment.

Devolver E3 2019: Fall Guys, Carrion, Bootleg & More
House of the Gundead will be making its way to local arcades next year, though Devolver promises it'll be playable at home too. You'll take control of an amorphous, eldritch nightmare of unknown origin and wreak havoc on the people holding you captive.

Motorcyclist riding on I-95 dies after lightning strikes helmet
In 2018, the state reported the highest density of lightning strikes , WCTV TV reported. An off-duty Virginia trooper cited by the station said he witnessed the strike happen.

Final Fantasy VII Remake finally gets a release date
Sony and Square Enix finally announced when its long-awaited Final Fantasy VII Remake will be available. The remake is expected to retell the story of the original game following fan-favorite Cloud Strife .

Dallas crane: Casualties confirmed after crane smashes into Texas flats during storms
Damage is being reported throughout North Texas , especially in Dallas , as severe storms moved through the area. He said rescue personnel were using dogs to try to find people who might be trapped inside the rubble.

Wrath Of The White Witch Will Grace The Switch This Fall
Bandai Namco is the western publisher of the 2013 PlayStation 3 game developed by Level-5 with designs from Studio Ghibli . It looks as though a Switch version of the non-remastered version may be coming, though the remaster may not hit Xbox.

CYBERPUNK 2077 Trailer Reveals Keanu Reeves (and a Release Date)
According to the release Reeves not only provided his likeness but also recorded extensive full-body motion capture for the role. Cyberpunk 2077 is a narrative-driven, open world RPG set in the most vibrant and unsafe metropolis of the future - Night City.

G20 frets over global economy amid US-China trade war
As companies move out of China in order to avoid U.S. tariffs, "there's going to be a big economic opportunity for a lot of other countries", he said.