United Tech., Raytheon merger could hurt market competition, says Trump

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United Tech., Raytheon merger could hurt market competition, says Trump

On Monday, the 10th of June 2019, the US President Donald Trump had given mixed signal on a $121 merger of US defense contractor, Raytheon and an aerospace conglomerate, United Technologies, saying that the merger might have hurt market competitiveness, while Pentagon had indicated that it would likely to take a hard look over the deal.

Latest comments over the merger talk between the two US giants, expected to be approved by the first half of 2020 came forth, after last Sunday (June 9th), United Technologies Corp. had issued a statement saying that it had reached an accord with one of the most dominant US defense contractors, Raytheon at a $121 merger deal, which would be creating a conglomerate straddling defense procurement and commercial aviation.

In point of fact, labelling the merger non-competitive, US President Donald Trump said at a CNBC interview on Monday (June 10th), “I want to see that we don’t hurt our competition. I hope the Raytheon deal. I hope it can happen.

But I don’t want to see where we have one less person that can compete for an order. When I hear they’re merging, does that take away more competition?” Trump said. “It becomes one big, fat, beautiful company, but I have to negotiate, meaning the United States has to buy things, and does that make it less competitive? Because ...

it’s already non-competitive”. Despite mixed comments from Washington and Pentagon, which would likely to be the biggest buyer of the merger, shares of Raytheon were up by 0.9 percent on late US trading hours, while shares of United Technologies were down by 2.7 percent.