United Technologies Merger with Raytheon Technologies

United Technologies and Raytheon have finally completed their merger – announcing the successful completion on April 3. 2020. This new merger followed the completion of its Carrier and Otis spinoffs on the same day. This merger stands to profit United Technologies as Raytheon Technologies is one of the large companies that dominate the aerospace and defense industry in the world. Raytheon has approximately $74 billion in pro forma net sales, a global team of 195,000 employees, and 60,000 engineers and scientists.  

Following the merger, each share of Raytheon Technologies has been converted in the merger with the right to receive 2.3348 shares of United Technologies which previously traded under the ticker symbol ‘UTX’. United Technologies has since been renamed Raytheon Technologies Corporation, with its shares now trading on the New York Stock Exchange (NYSE) under the ticker symbol “RTX.” United Technologies shareowners are still entitled to their shares of United Technologies common stock.

Before the completion of the UTC and Raytheon merger on April 3, both companies were required by the government to divest their other assets. As a result of that, Raytheon agreed to divest its military airborne radios business, while United Technologies agreed to divest its GPS and space optical business.

By combining two independent companies with individual “strengths and capabilities,” Raytheon Technologies (RTN) hopes to dominate the aerospace and defense industry. In the words of the Executive Chairman of Raytheon Technologies, Tom Kennedy, the company is a “powerhouse that will deliver advanced technologies that push the boundaries of known science.” Adding that the Raytheon “platform-agnostic, diversified portfolio brings together the best of commercial and military technology, and enabling the creation of new technologies across aerospace and defense for decades to come.”

“As we move forward, Raytheon Technologies will define the future of aerospace and defense through our focus on innovation, our world-class people and our financial and operational strength to create long-term values for our customers and shareowners,” said CEO of Raytheon Technologies.

Raytheon Technologies consists of four market-leading segments. They include Collins Aerospace Systems which specializes in “aerostructures, avionics, interiors, mechanical systems, mission systems and power controls” that serve customers in the commercial, business, regional, aviation and military sectors; Pratt & Whitney which specializes in designing, manufacturing, and servicing advanced aircraft engines and auxiliary power systems for customers across commercial, business, and military sectors;  Raytheon Intelligence & Space which specializes in providing cyber and software solutions and developing advanced sensors; and Raytheon Missiles & Defense which specializes in providing advanced end-to-end solutions to detect, track and engage threats.

Concerning the future of the company, Raytheon Technologies Corporation plans to hold an investor call to properly discuss the Q1 results of both United Technologies and Raytheon Technologies, on May 7, 2020. The call will hold on the Raytheon Technologies investor relations website.