(WTNH) – The Raytheon Company announced that they will be merging with United Technologies Corp. on Sunday.
Raytheon said the transaction will create a premier systems provider with advanced technologies to address rapidly growing segments within aerospace and defense.
The combined company will be named Raytheon Technologies Corporation.
Otis and Carrier under UTC will become a part of the merger in 2020.
Raytheon said the combined company will have approximately $74 billion in pro forma 2019 sales.
Senator Richard Blumenthal said in a statement,
“This huge potential merger raises very sweeping and serious questions and doubts about its impact on the Connecticut workforce and economy, as well as our national security and defense. I will demand answers immediately and publicly. As a member of the Senate Armed Services Committee, I am troubled by the possible impact on cost and competition of defense product, which may significantly affect American taxpayers. A range of significant factors, including company’s headquarters move to Massachusetts, make this proposed merger potentially unwelcome. Overall, this entire deal merits aggressive and penetrating scrutiny by Congress – as well as the Pentagon, the Department of Justice, and other executive branch agencies. That scrutiny must begin today.”
Blumenthal added, “Of paramount interest to me is that the company match increasing defense and commercial contract commitments with additional jobs in Connecticut. I will be fighting to protect Connecticut jobs and workers every step of the way.”
“The combination of United Technologies and Raytheon will define the future of aerospace and defense,” said Greg Hayes, United Technologies Chairman and CEO. “Our two companies have iconic brands that share a long history of innovation, customer focus and proven execution. By joining forces, we will have unsurpassed technology and expanded R&D capabilities that will allow us to invest through business cycles and address our customers’ highest priorities. Merging our portfolios will also deliver cost and revenue synergies that will create long-term value for our customers and shareowners.”
Some Republicans are already saying this is a repeat of when GE moved from Fairfield to Boston, also right after Democrats passed a budget over Republican objections. This is more complicated because it’s not just a move, but a merger.
The combined company will be called Raytheon Technology Corporation, or RTC. UTC Shareholders will have slightly more control and UTC board members will have slightly more board seats.
Read the full release here.