Raytheon and United Technologies said to be in merger talks
Deal that would create a company with $166bn market capitalisation could be announced within days
United Technologies is in talks to merge its aerospace unit with US military contractor Raytheon in a deal that would create a global defence giant, according to the Wall Street Journal.
If the discussions progress, the all-stock deal may be announced within the coming days, the newspaper reported on Saturday, citing a person familiar with the matter. The companies have a combined market value of $166 billion (Dh609bn). A successful deal would create the second-biggest Western aerospace defence company, behind Boeing but ahead of Airbus, according to Bloomberg Intelligence.
United Technologies' chief officer Greg Hayes is expected to lead the new company, while Raytheon’s chief Thomas Kennedy would become chairman of the combined entity, the Journal reported.
The deal would create a powerhouse offering products ranging from Patriot missiles to engines fitted in Lockheed Martin's F-35 fighter jet.
The merger would not impact the planned spin offs at United Technologies, according to the Journal. The company had previously planned to sell its Carrier air conditioning business and Otis elevator division.
The deal with Raytheon may pressure rival General Electric, which competes with United Technologies for commercial aerospace clients, to also seek scale.
Updated: June 9, 2019 11:30 AM