Raytheon and United Technologies announced their merger on Sunday, making the United States largest and one of the largest military companies in the world.
The two companies emphasized that they have a complementary portfolio of activities in the aerospace and defense industries. The new company is launched under the name Raytheon Technologies Corporation.
In their announcement, the companies stated that, at the end of the transaction, United Technologies shareholders would receive 57 percent of the new company’s shares and 43 percent of Raytheon’s shareholders. The leaders of the companies stressed that it was a merger of two companies of equal value. The CEO of the new company will be Greg Hayes, the former CEO of United Technologies, but will continue to work as CEO for the next two years together with Thomas Kennedy, former head of Raytheon.
Together, the two large companies had a turnover of about $ 74 billion in 2019.
Raytheon manufactures, among others, Patriot anti-missile systems or Tomahawk robotic aircraft, while United Technologies has predominantly produced pratt and whitney engines. These engines are used in both civil and combat aircraft.
The analyst at The Wall Street Journal commented that, following the merger of the two large companies, there would almost certainly be no antitrust investigation, as the two companies were not market competitors.