Raytheon and United Technologies are negotiating to merge
United Technologies President and CEO Gregory Hayes
Richard Drew AP
Raytheon and United Technologies & # 39; major aviation activities are in late talks to combine in a corporation that will increase consolidation in aviation and the defense sector, according to a source familiar with the case.
The Companies have a total market capitalization of nearly $ 166 billion.
The deal will give defense lawyer Raytheon exposure to the thriving commercial aviation sector through United Technologies & # 39; unit, making everything from high-quality jet engines and competing with General Electric, to cockpit controls, aircraft seats, interiors. It would diversify defense supplier Raytheon and consolidate aviation and defense companies that supply giants such as Airbus and Boeing.
In November 201[ads1]8, United Technologies said it would spin from the Otis Elevator and Carrier Air Conditioner to separate companies. The remaining aviation industry will be combined with Raytheon, the person said. Gregory Hayes, CEO of United Technologies, will become CEO of the merged company, which will be called Raytheon Technologies, and Raytheon's CEO, Thomas Kennedy, will chair, according to the person.
The agreement, a so-called merger of equals, would close in 2020, when the United Technologies company expects to complete the separation of elevator and air conditioning, said the person
The agreement, which can still fall apart, could be announced as early as Monday, source said. The agreement was reported earlier by The Wall Street Journal.
Companies did not immediately return requests for comment.
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