United Technologies Corp (UTC) and Raytheon announced a merger on Sunday, which they plan to name as “Raytheon Technologies." The combined company is forcasted to have approximately $74 billion of annual sales this year, putting it behind Boeing as the second-largest aerospace and defense company in the US by revenue.
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, UTC shareowners will own approximately 57 percent and Raytheon shareowners will own approximately 43 percent of the combined company on a fully diluted basis, Raytheon said in a statement Sunday.
Raytheon and UTC have a combined market value of close to $166 billion. The stock price of each has gained more than 21% this year, CNBC reported. According to Reuters, the new company would be worth $121 billion.
The combined company will manufacture products that range from Tomahawk missiles and radar systems to jet engines that power passenger planes and the seats that fill them.
The merger is expected to close in the first half of 2020, following completion by United Technologies of the previously announced separation of its Otis and Carrier businesses. The timing of the separation of Otis and Carrier is not expected to be affected by the proposed merger and remains on track for completion in the first half of 2020, Raytheon said.
UTC in September last year announced that will acquire Rockwell Collins for $140.00 per share, in cash and UTC stock. Following this, Boeing and Airbus raised concerns that the acquisition would raise costs and slow down production of planes.
Raytheon has won a $7 million contract to fabricate, assemble, test and deliver low-rate initial production Airborne Mine Neutralization Systems (AMNS) for the US Navy's MH-60 twin-engine, medium-lift utility helicopters. The contract includes providing engineering services and support
Raytheon has tested a new rocket motor for the Defence Advanced Research Projects Agencys (DARPA) Multi-Azimuth Defense Fast Intercept Round Engagement System, or MAD-FIRES. The MAD-FIRES interceptor is designed to provide self-defence capability that defeats multiple waves of anti-ship missiles, unmanned aerial vehicles, as well as other threats, the company said in a statement Monday
United Technologies Corporation (UTC) will acquire Rockwell Collins for $140.00 per share, in cash and UTC stock, both companies announced yesterday
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Raytheon has won a $29.6 million contract to upgrade US Navys Block IV Tomahawk test and related equipment
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