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United Technologies, Raytheon to create $120 billion aerospace and defence giant

June 10, 2019 / Moneycontrol

United Technologies Corp agreed on June 9 to combine its aerospace business with US contractor Raytheon Co and create a new company worth about $121 billion, in what would be the sector's biggest ever merger. The deal would reshape the competitive landscape by forming a conglomerate which spans commercial aviation and defence procurement. United Technologies provides primarily commercial plane makers with electronics, communications and other equipment, whereas Raytheon mainly supplies the US government with military aircraft and missile equipment. While United Technologies and Raytheon have some common customers, their business overlap is limited, an argument the companies plan to make once US antitrust regulators start scrutinizing the merger. However, the two major commercial aircraft makers, Boeing Co and Airbus SE, as well as the Pentagon, have been known to use their significant purchasing power to seek concessions from their suppliers and may not welcome a potential lessenin...