Blockbuster Defense Deal
|Source: Raytheon Aerospace|
Creates a $160 Billion Defense & Aerospace Giant
In a blockbuster announcement, United Technologies, with a market value of $114 billion and Raytheon, with a market value of $52 billion, have agreed to merge their aerospace and defense businesses. That creates an industry leader valued at $160 billion. The new company will be called Raytheon Technologies Corporation. The companies anticipate annual cost savings a $1 billion.
Merger of Equals
The companies term this a "merger of equals". It's an all stock deal. The companies say that by joining forces they have "unsurpassed technology and expanded R&D capabilities" to deliver innovation. They add the merger will "deliver cost and revenue synergies". There was some speculation that the two New England based companies were talking, but Sunday's announcement that the two global aerospace businesses are merging came as a big surprise. The new entity will be headquartered in the Boston area. The deal is expected to close in early 2020.