The Raytheon Co. and United Technologies Corp. are merging in an all-stock deal that the two companies say is a merger of equals. The new company's name will be Raytheon Technologies Corp. — and it's expected to have nearly $74 billion in annual sales.
The new defense and aerospace company would be second only to Boeing in the U.S., according to the latest Forbes 500 rankings by annual revenue. On that list, Boeing had more than $101 billion in revenue while another rival, Lockheed Martin, racked up $53.7 billion, according to Forbes.
"The combination of United Technologies and Raytheon will define the future of aerospace and defense," United Technologies Chairman and CEO Greg Hayes said in a statement about the deal.
Hayes is set to become the leader of the new company: He'll take the titles of chairman and CEO two years after the merger is finalized.
Under the deal, United Technologies' shareholders will own about 57% and Raytheon shareholders will own about 43% of the merged company. Both Raytheon's and United Technologies' board of directors have unanimously approved the merger, which is expected to close during the first half of 2020.
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