WASHINGTON, June 10 (Bernama) -- Raytheon and United Technologies, two US military contractors, have agreed to a "merger of equals" to become the nation's second largest aerospace-and-defence company, reported Xinhua news agency, quoting US media stories on Sunday.
The merger, if followed through, would create a company with a value of more than US$100 billion and annual sales of US$70 billion dollars, a behemoth after Boeing in the aerospace and defence sectors.
"Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success," Tom Kennedy, Raytheon's chairman and chief executive, said in a statement.
The deal is reportedly set to close in the first half of 2020. The new company, headquartered in the Greater Boston area, will be named Raytheon Technologies Corp.
The merger is unlikely to attract significant antitrust scrutiny due to a limited overlap in their defence business, but the companies have not yet briefed the Department of Defence.
United Technologies aerospace products include jet engines while Raytheon produces the Tomahawk and Patriot missiles, among other military weaponry.