Raytheon-United Technologies combine in merger
A giant will be created, the second one in the world after Boeing
Raytheon Company and United Technologies Corp. have entered into an agreement of merger. From it a giant will be created in the aerospace and defense sector. The merger of Raytheon, a defense company, and United Technologies, an subjetaerospace company, comprised of Collins Aerospace and Pratt & Whitney, will offer a complementary portfolio of platform-agnostic aerospace and defense technologies. The combined subject that will be created, will be named Raytheon Technologies Corporation, will offer expanded technology and R&D capabilities to deliver innovative solutions aligned with customer priorities and the national defense strategies of the US and its allies. From the marriage Otis (company of lift) and Carrier (firm of construction and systems) are excluded, which are expected to be separated from United Technologies in the first half of 2020 before that the financial operation is completed.
The new born company from over USD 160 bn of capitalization of SE, will have annual revenues for $74 billion and will be the second one in the world after Boeing; in addition it will enjoy enhanced resources and financial flexibility to support significant R&D investments.
Under the terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, Raytheon shareowners will receive 2.3348 shares in the combined company for each Raytheon share. Upon completion of the merger, United Technologies shareowners will own approximately 57 percent and Raytheon shareowners will own approximately 43 percent of the new born company. The merger is expected to close in the first half of 2020, following the separation of Otis and Carrier.
The new subject could boast in its portfolio the Tomahawk missile, productions that will go from engines to seats for the F-35 passing for the launchers and for Patriot missiles,
This marriage is seen with favour by Leonardo and its CEO Alessandro Profumo declared that: "We are customers of both and we should understand that impact can be to our relationships of supply". In the USA we are in another category, he continued. We are a second tier, that is operators of second level. Said this, the gradual focus by the first level operators "Increases the valuw of asset and then we are also satisfied".
The Trump President is not of the same opinion. He communicated it to Twitter, as always he makes, this time his uncertainty and his worry that the marriage could translate in an increase of costs for the American Defence: "When I listen about the merger I ask myself; it will reduce the competition?".
© AVIONEWS - World Aeronautical Press Agency Srl