According to an official announcement by the newly formed Raytheon Technologies Corporation, the ‘all-stock merger of equals transaction’ between Raytheon Company and United Technologies Corporation was completed successfully on 3rd April, 2020. United Technologies’ Carrier and Otis businesses are not included because of the different areas of activity and have been ‘spun-off’. Headquartered in Waltham, Mass., Raytheon Technologies is one of the largest aerospace and defense companies in the world with approximately $74 billion in 2019 net sales and 195,000 employees around the world, including 60,000 engineers and scientists. The new company comprises Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense. This creates what new company describes as “the world’s most advanced aerospace and defense systems provider.”
Raytheon company shares ceased trading prior to the market open on 3rd April, 2020, and each share of Raytheon stock has been converted in the merger into the right to receive 2.3348 shares of United Technologies common stock. Upon closure of the merger, United Technologies’ name has been changed to ‘Raytheon Technologies Corporation’ and its shares of common stock will begin trading on the NYSE, on the 6th March, under the ticker symbol “RTX.” United Technologies shareowners will continue to hold their shares of United Technologies common stock, which now constitute shares of the new Raytheon Technologies Corporation.
Greg Hayes, Raytheon Technologies’ CEO, stated:
‘Raytheon Technologies brings together two companies with combined strengths and capabilities that make us uniquely equipped to support our customers and partners during this unprecedented time. We will also play our part in the war on the COVID-19 pandemic, including doing everything we can to keep our employees around the globe safe and well. As we move forward, Raytheon Technologies will define the future of aerospace and defense through our focus on innovation, our world-class people and our financial and operational strength to create long-term value for our customers and shareowners.’
The combination of UTC and Raytheon creates a new company that will have an approximate turnover of $74 billion in annual revenue, based on the companies’ 2019 turnovers. Going forward Raytheon Technologies Corporation hope to “introduce breakthrough technologies at an accelerated pace across high-value areas of commercial aerospace and defense.”