Raytheon stock dips as market has second thoughts on merger of equals with United Technologies Corp. (UTC)
WALTHAM, Mass. – The market doesn’t seem to like the proposed merger of equals of Raytheon and United Technologies. Shares initially popped on the news, but have come down as interested parties have weighed in. Investor Place reports. Continue reading original article
The Military & Aerospace Electronics take:
2 July 2019 -- There has been some speculation that the merger, scheduled to close early in 2020, may not happen. The President is worried the merger could cut competition. The head of Air Force procurement has called it a security concern. Hedge fund managers Dan Loeb and Bill Ackman are questioning the deal’s logic.
The combined company — Raytheon Technologies — will be based at Raytheon’s Waltham, Mass., offices. The Air Force’s primary acquisition executive, Will Roper, wasn’t talking about scuttling the deal, however, just holding more frequent competitions in a bid to see more companies.
Raytheon is best known for making missiles and the systems that find their targets. United Technologies’ defense work is focused on avionics and airplane parts, including Pratt & Whitney engines. Much of UTC’s work is done in Iowa, Raytheon in California and the Southeast U.S. There is little overlap between the product lines, which means the merger is likely to go through.
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John Keller, chief editor
Military & Aerospace Electronics
