Raytheon, United Tech. set to create $120 billion defense & aerospace giant

by   |  VIEW 203

Raytheon, United Tech. set to create $120 billion defense & aerospace giant

On Sunday, the 9th of June, the US-based aerospace conglomerate, United Technologies Corp. had reached an accord to merge its aerospace making business with one of the most influential US defense contractors, Raytheon Co., headquartered in Waltham, Massachusetts, to create a new company which could be worth as much as $121 billion, remarking the biggest merger the world had ever seen on defense industry.

None the less, Sunday’s (June 9th) report of reaching an accord between the two US giants came forth after Saturday (June 8th), a source familiar with the subject-matter had told that there had been an ongoing negotiation between US defense contractor Raytheon and aerospace conglomerate, United Technologies, over a potential merger.

In point of fact, the sources had also revealed on Saturday (June 8th) that the merger talks could be made public as early as by this week, while Sunday’s statement of United Technologies had been in alignment with the source’s comments on Saturday, who said that the deal would likely to reshape the landscape of US defense industry, as it would be a commercial aviation and defense conglomerate with huge potentiality to serve global industry alongside US defenses.

According to United Technologies’ Sunday’s (June 9th) statement, it would be holding about 57 percent stake of the combined business, while Raytheon CEO Tom Kennedy would be named as the executive chairman and the merger would be led by United Technologies’ CEO, Hayes.