United Technologies Corp. and Raytheon Co. are engaged in merger discussions, according to several reports, the result of which would combine the aerospace business of UTC with Raytheon into a broader portfolio to be called Raytheon Technologies, with products and services for both civilian and military aerospace and defense programs. The combined market value of the combined businesses would be $166 billion, according to reports.
United Technologies CEO Gregory Hayes would the chief executive officer of Raytheon Technologies. Raytheon CEO Thomas Kennedy would become chairman.
It’s reported that the merger would be organized as an all-stock combination.
Raytheon manufactures weapons systems, notably guided missiles, as well as electronics for military and commercial aerospace: air-traffic control systems, radar and sensors, satellite sensors, and aircraft communication systems. Linking this portfolio to United Technologies would expand its range of activities into both civilian and defense aerospace sectors.
United Technologies is in the process of separating its current portfolio into three separate businesses. The future United Technologies will be comprised of aircraft engine designer and manufacturer Pratt & Whitney; and Collins Aerospace, the former Rockwell Collins, a supplier of electrical, mechanical, and software for commercial and military aerospace programs. This is the organization that would be merged with Raytheon.
Separating from UTC will be Otis Elevator Co., manufacturer of "people-moving products" like elevators, escalators, and moving walkways; and Carrier, a developer of HVAC, refrigeration, fire, security, and building automation technologies. The portfolio includes brands like Carrier, Kidde, Edwards, LenelS2, and Automated Logic.