Raytheon Technologies Mega War Merger
Just in. Aircraft and war equipment will unite in the merger of Raytheon and United Technologies. Aerospace and defense players are waking up to the biggest disruption to their industry in a long while!
Raytheon is a defense contractor supplying all things war equipment to the military, from tomahawks to radar systems. UnitedTech is an aerospace supplier making all things planes, from electrics to communications equipment. Together, ‘Raytheon Technologies’ will sell it all under one roof.
Some fast facts? Both stocks have shot up this year on the back of solid individual performances. The new company will be worth $121 billion with combined annual sales topping $74 billion. And UnitedTech CEO, Hayes, will continue in that role for the new company until 2 years after the dust settles on this deal.
Raytheon Technologies will be balanced between two heavy parts industries, and be positioned to pounce on growth opportunities in both. On the one hand, increased defense spending by the Trump administration. And on the other, record plane orders from airlines. Boeing has pulled out the biggest lead in the sector by absorbing that demand. This merger, however, levels the playing field.
When this hot patch of business subsides, crossovers in research and development are intended to make it a thoroughly long-term play. On top of improved bargaining power and cost synergies, Hayes claims that the company will “be able to invest through business cycles” and allocate earnings more effectively. From an outside perspective, analyst Loren Thompson of the Lexington Institute said: “nobody anticipated a combination of this scale.” Investors, taken by surprise, now watch on as the future takes on a new appearance.
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