A merger between the two major defense contractors is worth at least $166 billion.
The two aerospace and defense companies announced the prospect of a merger on Sunday, announcing that a deal could be finalized as soon as Monday. The deal was indeed finalized, and the merger was announced on Monday. The two companies will merge in one of the largest corporate mergers of 2019. The new company will have about $74 billion in annual revenue and a total value of about $166 billion. United Technologies brings more to the table than Raytheon, but the two companies represent an aerospace-defense powerhouse. United Technologies shareholders will own 57% of the new company, while Raytheon shareholders will own the rest.
The implications of this merger on the defense and aerospace industries will be significant. United Technologies is itself a conglomerate which produces a wide array of products, including jet engines. It is believed by some that “The combination of United Technologies and Raytheon will define the future of aerospace and defense,” as United Technologies CEO Greg Hayes said in a press release.
The new company will be named “Raytheon Technologies Corporation,” and 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 U.S. and its allies and friends,” according to the two companies.