United Technologies CEO Greg Hayes and Raytheon CEO Tom Kennedy on the long-term impact of the merger deal.
Aerospace company United Technologies and defense contractor Raytheon moved a step closer to becoming the second largest aerospace company as shareholders approved a merger of the two businesses.
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The companies jointly announced on Friday that shareholders “voted overwhelmingly” to approve all the proposals necessary for a “merger of equals” between UTC and Raytheon. The combined business would be valued second only after Boeing in the industry, well over $100 billion.
Tom Kennedy, Raytheon’s chairman and CEO, said he was pleased that shareholders voted to support the merger.
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“Today’s vote reflects a significant step on our path to united two world-class companies with complementary technologies and supports our view that this merger of equals will create additional growth opportunities while delivering benefits to our shareholders, customers and employees,” he said.
The merged company has been tentatively named Raytheon Technologies Corporation, and leadership of UTC and Raytheon have said it will provide advanced technology in the aerospace and defense industries. UTC makes engines for some Airbus planes and the F-35 fighter jet. Raytheon makes Tomahawk and Patriot missiles, space suits and other technology.
The Arleigh Burke-class guided-missile destroyer USS Barry (DDG 52) launches a Tomahawk cruise missile to support Joint Task Force Odyssey Dawn.
Greg Hayes, UTC’s chairman and CEO, said the merger “will define the future of aerospace and defense.”
“With our technological and R&D capabilities, Raytheon Technologies will deliver innovative and cost-effective solutions aligned with the highest customer priorities for decades to come,” he said.
The companies said they would include the final shareholder vote results in their respective Securities and Exchange Commission filings once they were certified.
The deal is expected to close in the first half of 2020, assuming they get regulatory approval.
Once the transaction goes through, UTC shareholders will own about 57 percent of the combined company, and Raytheon shareholders will own about 43 percent. Raytheon shareholders will receive 2.3348 shares in the merged business for each Raytheon share they own.
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FOX Business’ Matthew Kazin contributed to this report.
2019-10-12 01:33:47Z
https://www.foxbusiness.com/markets/raytheon-united-technologies-shareholders-approve-merger-aerospace-defense-tech
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