US defense giants Raytheon and United Technologies to merge

https://www.dw.com/en/us-defense-giants-raytheon-and-united-technologies-to-merge/a-49130815

US defense giants Raytheon and United Technologies to merge

Date 10.06.2019

The maker of Tomahawk and Patriot missile systems Raytheon is to merge with aerospace industrial concern United Technologies Corporation (UTC) to take advantage of the strong global demand for fighter jets and munitions.

In the all-stock deal, United left its Carrier air conditioning business and Otis elevator division out of the agreement. This means the value it brings to the agreement is about $60 billion (€53 billion), close to Raytheon's market capitalization of $52 billion.

United Technologies has moved its focus to its aerospace business through its 2018 $23 billion acquisition of Rockwell Collins and the Pratt & Whitney engines business.

The two organizations said it would be a "merger of equals" and it would boost development, while saving the US government money.

President Donald Trump was less convinced, though, stating he was "concerned" about the deal.
(snip)