In what can easily be dubbed as the greatest deal ever seen in the aviation industry, The Raytheon Co. and the United Technologies Corp. have agreed terms for a merger between the two companies. The new company, which will be called the Raytheon Technologies Corp is expected to eke out USD 74 billion in sales annually. The new company will be second only to Boeing in the United States in terms of revenue, as listed by Forbes in its top 500 list.
Greg Hayes, CEO for United Technologies Corp, expressed his consent and stated the deal as “the future of aerospace and defense”. Boeing will have a revenue of USD 101 billion, which is the only number higher to the USD 78 billion of the all new giant merger. Their closest rival after Boeing, according to Forbes’ list, Lockhead Martin, accumulated USD 53 billion in revenue, which is actually not that far away from the second slot. Talking of roles and responsibilities in the new company, Greg Hayes will take over as the Chairman and CEO of the company after two years of the official completion of the merger are accomplished. As for the shareholding capabilities are concerned, United Technologies corp. will hold 57% of the shares, while Raytheon Technologies will own 43% of the shares. While board members of both the companies have voted in for the merger positively, a confirmation from the government regulatory board and the public shareholders is awaited. Both companies have a lot of inventions credited to their name in the field of aerospace and defense.
Talking about major mergers in the technology sector, Google and Amazon both are touted to make some big money acquisitions in the coming days. While Google is expected to strengthen its feeble Cloud resources, Amazon is looking to up their ad servers.