Spending increases are now slowing to low single-digit increases, and much of the additional money is being directed at refreshing U.S. nuclear forces. While commercial aircraft sales have been booming during an unprecedented 13-year surge in orders that has left Airbus and Boeing with backlogs of more than 13,000 jetliners, analysts have cautioned that slowing air traffic could force aircraft makers to reverse production increases. Today's announcement follows the recent selection of Anthony "Toby" O'Brien as chief financial officer for the new Raytheon Technologies. Under the Trump administration, defense budgets have soared as U.S., European and other manufacturers have boosted production. Raytheon and United Technologies announced on Sunday that they will merge, creating a behemoth American aeronautics and defense company. When the merger is … Raytheon and United Technologies (UTC) announced on Sunday that they will merge, creating a behemoth US aeronautics and defence company. UTC and Raytheon are both well positioned in the F-35 program, where production is increasing. The deal was described as the largest ever in the defense and aerospace industry, far eclipsing United Technologies' purchase of Rockwell Collins, a major maker of avionics and aircraft parts, for $30 billion in 2017. The deal would be one of the largest in a year that has included some big mergers but otherwise has been lackluster. "There is minimal overlap for the two companies," said Ms. Kahyaoglu, predicting few antitrust issues for the deal. utc raytheon merger news today: 12. Pentagon spending fell sharply between 2013 and 2017 because of broader federal budget pressures and then expanded at a clip of around 10% in the final Obama administration budget and the first two of the Trump administration. The tie-up would complete a radical transformation at UTC, a once sprawling conglomerate that already plans to spin off its Otis elevator and Carrier building-systems businesses into separate companies. In-depth news coverage of the Greater Boston Area. post a comment email this to friend. The new company, Raytheon Technologies Corporation, will be created via an exchange of shares between the two firms, with the merger expected to conclude in the first half of 2020, they said in a joint statement. Investors are pressuring traditional conglomerates to become more focused. Raytheon Co., one of the world's largest defense contractors, and the aerospace giant United Technologies Corp. announced an all-stock merger on Sunday that would create the second-biggest defense and aerospace company in the United States, behind only Boeing Co. UTC has about 2,500 employees overall in North Carolina, and has announced plans to add 1,500 in the state as part of a 35,000 companywide employee … O'Brien is the current CFO of Raytheon Company. The two-year uptick in Pentagon spending on new aircraft, missiles and other defense equipment is also running out of steam, with analysts projecting muted growth over the next several years. United Technologies and Raytheon Complete Merger of Equals Transaction. UTC has said the spinoffs will take place in the first half of next year. Creates the world’s most advanced aerospace and defense systems provider. By Angela Fortuna • Published June 9, 2019 • Updated on June 10, 2019 at 11:55 am In addition to other benefits from increased scale, analysts say the proposed deal could help the enlarged company weather any slowdown in the commercial aerospace and defense markets. From 1993 to 2000, the number of what are considered prime contractors for the Defense Department fell from 50 to six, researchers found. Raytheon and UTC announced in June 2019 plans to officially merge into a new entity called Raytheon Technologies Corporation, with the deal at the time expected to … Trending Now. The combined entity will be known as Raytheon Technologies, and will have revenues of $74 billion and a valuation of $166 billion. Raytheon and United Technologies projected that the combined company would have sales of about $74 billion in 2019, making it second only to Boeing, which reported about $101 billion in sales last year. Like Raytheon, UTC has also seen its share price grow across the year from $108 at the start of January to $135, reaching a high of $142 near the end of April. 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