A Merge Between 2 Companies Are a Step Closer to Becoming the Second-Largest Aerospace Company
Aerospace company United Technologies, including defense contractor Raytheon, is one step close to becoming the second-largest aerospace company as shareholders accepted an alliance of the two businesses.
The companies collectively announced on Friday that shareholders “voted overwhelmingly” to approve all of the proposals essential for a “merger of equals” between UTC and Raytheon. The combined business could be valued second only after Boeing in the industry, properly over $100 billion.
Tom Kennedy, Raytheon’s chairman, and CEO stated he was pleased that shareholders voted to assist the merger.
This merged company has been tentatively named Raytheon Technologies Corporation. Also, the leadership of UTC and Raytheon has stated it’ll produce advanced technology within the aerospace and defense industries. UTC makes engines for Airbus planes and the F-35 fighter jet. Raytheon makes Patriot missiles and Tomahawk, space suits, and other technology.
The companies stated they would include the final shareholder vote leads to their respective Securities and Exchange Commission filings as soon as they have been certified.
The deal is anticipated to close in the first half of the 2020 year, considering they get regulatory approval.
When the transaction goes through, UTC shareholders will own about 57 % of the merged company, and Raytheon shareholders will own nearly 43 %. Raytheon shareholders will receive 2.3348 shares in the merged business for every Raytheon share they own.