Raytheon and United Technologies to merge
Company shareholders have agreed a merger to combine Raytheon and United Technologies' aerospace businesses into a single entity called Raytheon Technologies Corporation.
United Technologies' aerospace business, comprised of Collins Aerospace and Pratt & Whitney, supplies high technology products and services to the building and aerospace industries. Raytheon is a key supplier of electronics, mission systems integration, C5I products and services, sensing, effects and mission support to the global defence market.
According to the companies, 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, and completion by United Technologies of the separation of its Otis and Carrier businesses.
Tom Kennedy, Raytheon chairman and CEO, said: ‘I am pleased that the shareowners of Raytheon and UTC voted in favour of our powerful strategic combination. Today's vote reflects a significant step on our path to unite two world-class companies with complementary technologies and supports our view that this merger of equals will create additional growth opportunities while delivering benefits to our shareowners, customers and employees.’
Greg Hayes, United Technologies Chairman and CEO, added: ‘Today is an important milestone in our transformational merger, which will define the future of aerospace and defence. With our technological and R&D capabilities, Raytheon Technologies will deliver innovative and cost-effective solutions aligned with the highest customer priorities for decades to come.’
More from Defence Notes
-
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
-
Haiti crisis forces Caribbean militaries to prepare for intervention
As gangs gain control of Port-au-Prince, Haiti’s Caribbean neighbours have been preparing to intervene in the failed state, with the US and other partners waiting in the wings with equipment and financial support.