Raytheon and United Technologies are reportedly in the advanced stages of merger talks that could result in an aerospace and defense powerhouse worth more than $100 billion, second only to Boeing.
The Wall Street Journal was the first to report the talks, which it based on unnamed sources said to be familiar with the matter. Terms of the possible pairing are not known, but a deal could be announced as soon as Monday.
Representatives from both companies declined a USA TODAY request to comment.
Such a deal is expected to be an all-stock merger-of-equals, and not impact ongoing plans for United Technologies to spin off its Otis elevator and Carrier building systems units.
Just last week, in fact, United Technologies appointed new CEOs for these independent stand-alone public companies.
United Technologies CEO Greg Hayes will lead the post-merger company, the Journal reported, with his Raytheon counterpart Thomas Kennedy sticking around as chairman. Should the deal go through, United Technologies stakeholders are likely to own the majority of the shares.
United Technologies aerospace products, including jet engines manufactured by subsidiary brand Pratt & Whitney. Raytheon produces the Tomahawk and Patriot missiles, among other military weaponry.
But there isn’t much overlap in the two companies defense businesses.
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