Raytheon, United Technologies Announce Mega-Merger

The two companies are joining forces in an all-stock deal described as a merger of equals. The combined company, which will be named Raytheon Technologies Corporation, would have annual revenue of about $74 billion

Source: UTC

United Technologies has agreed to combine its aerospace business with Raytheon and create an aerospace and defense powerhouse worth about $121 billion, in one of the largest-ever mergers in the sector.

The two companies announced Sunday that they have agreed to combine in an all-stock deal they termed a “merger of equals.” The new company would have annual revenue of about $74 billion. Together, UTC and Raytheon are worth about $166 billion in market value now, according to CNN.

Under the terms of the deal, United Technologies shareholders would own 57% of the combined company, with Raytheon shareholders owning the rest.

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 US and its allies and friends, the companies said in a press release.

The combination excludes Otis and Carrier, which are expected to be separated from United Technologies in the first half of 2020.