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Merger will 'define the future of aerospace'Merger will 'define the future of aerospace'

A merger described as one of the largest-ever combinations in the U.S. aerospace and defense sector has been approved by the shareholders of Raytheon Co. and United Technologies Corp.

The merged entity, to consist of defense and cybersecurity company Raytheon, and the United Technologies aerospace units Pratt and Whitney and Collins Aerospace, is expected to be completed in the first half of 2020 pending regulatory assent, according to a jointly issued news release.

The new company, with $74 billion in sales, will be known as Raytheon Technologies Corp., with United Technologies spinning off its Carrier climate control unit and its Otis elevator business. Shareholders of Raytheon and United Technologies approved the deal “overwhelmingly” in separate shareholder meetings, it said.

In an October 4 report, Barron’s cited an assessment of potential growth at United Technologies coming from the expected future profitability of a geared-turbofan engine that powers many Airbus jets.

“I am pleased that the shareowners of Raytheon and UTC voted in favor of our powerful strategic combination,” said Tom Kennedy, chairman and CEO of Waltham, Massachusetts-based Raytheon. “Today's vote reflects a significant step on our path to unite 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 shareowners, customers and employees.”

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,” said Greg Hayes, chairman and CEO of United Technologies, of Farmington, Connecticut.

Topics: Aviation Industry, Financial

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