Raytheon, United Technologies will merge, which will be a defense giant. - HailNewsUp.com: provides the latest news from India and the world

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Monday, June 10, 2019

Raytheon, United Technologies will merge, which will be a defense giant.

Raytheon, United Technologies will merge, which will be a defense giant.
Raytheon and United Technologies are merged into an agreement that is one of the world's largest defense companies. With combined sales of $ 74 billion, the merged company will be bigger than Lockheed Martin and Northrop Grumman.

Merging announced on Sunday will be closed in the first half of 2020 when United Technologies completes the already planned separation of its Otis and career businesses.

Raytheon shareholders will receive 2.33 shares in each new company for each Raytheon share. Once the merger is complete, United Technologies shareholders will have around 57% of the company; Raytheon shareholder will be the best owner.

A joint company called Raytheon Technologies Corp. will be an unbroken source of defense research and technology. Companies said that they would be able to develop new technologies more rapidly with combined research and development expenditure of 8 billion dollars and more than 60,000 engineers per year.

Raytheon Technologies will focus on hybrid cyan protection in hypersonic (vehicles or weapons that can fly faster than sound), as well as intelligence and monitoring systems, artificial intelligence for commercial aviation and connected plans.

Reducing expenditure

Raytheon, located in Waltham, was founded in 1922 and makes missiles, which include Patriot Systems and Cyber ​​Space Tools. United Technologies located in Connecticut, was founded in 1934 and manufactures products for aerospace and construction areas, including aircraft engines and space suits.

After all, companies are expected to merge the annual cost of $ 1 billion, of which half of the customers will be returned.

Greg Hess, President, and CEO of United Technologies said in a statement: "Our two companies have iconic brands that share a long history of innovation, customer orientation, and proven execution."

Hayes will be the CEO of Raytheon Technologies. Two years after the conclusion of the merger, I will add the post of President. Raytheon chairman and CEO Tom Kennedy will be named CEO. The company will have eight directors of United Technologies and seven directors of Raytheon.

Boston Headquarters

Raytheon Technologies will be located near Boston. American Sen brought a complaint from Richard Bloommantel, a Connecticut Democrat, who said he was concerned about the possible impact of going to headquarters from Massachusetts. Blumenthal, a member of the Senate Armed Services Committee, urged the Department of Defense, the Justice Department, and other agencies to investigate the potential impact on cost and competition in the defense industry.

Defense mergers have boosted companies, which have been made with the money of defense budget growth, want to ensure future growth. According to PricewaterhouseCoopers, in 2018, there were eight mergers which were more than $ 1 billion in value, including stock transactions between L3 Technologies and Harris and the acquisition of CSRA Inc. by General Dynamics.