Shareholders of United Technologies and Raytheon have given their approval to form a merger of equals- “Raytheon Technologies.”
“At their respective special meetings of shareowners held today, Raytheon and United Technologies shareowners voted overwhelmingly to approve all of the proposals necessary to complete the merger of equals transaction combining United Technologies' aerospace businesses, comprised of Collins Aerospace and Pratt & Whitney, with Raytheon,” Raytheon said in a statement.
The transaction is expected to close in the first half of 2020, subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals, as well as completion by United Technologies of the separation of its Otis and Carrier businesses.
Raytheon Technologies 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 combined company is forecasted 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 deal valued at about $120 billion, Raytheon shareholders will get 2.3348 shares in the combined company for each Raytheon share.
Upon completion of the merger, United Technologies shareholders will own about 57%, and Raytheon shareholders will own about 43% of the combined company.