Posted on 10/14/2019 6:39:13 AM PDT by robowombat
Raytheon, United Technologies Shareholders Approve Deal
By: Ben Werner October 11, 2019 1:13 PM
At a pair of special meetings on Friday morning, shareholders approved the United Technologies’ purchase of Raytheon, paving the way for creating a defense industry behemoth.
The all-stock deal still needs approval from federal regulators before an expected closing during the first half of 2020, the companies announced in a joint release.
“I am pleased that the shareowners of Raytheon and UTC voted in favor of our powerful strategic combination,” Tom Kennedy, chief executive of Raytheon, said in a statement using the ticker symbol for United Technologies. “Today’s vote reflects a significant step on our path to unite two world-class companies with complementary technologies and supports our view that this merger of equals will create additional growth opportunities while delivering benefits to our shareowners, customers and employees.”
The new firm, to be named Raytheon Technologies, will be a defense and aerospace giant with estimated annual sales of $74 billion. In the U.S., among the defense and aerospace industry, only Boeing reports more annual sales.
“Today is an important milestone in our transformational merger, which will define the future of aerospace and defense. With our technological and R&D capabilities, Raytheon Technologies will deliver innovative and cost-effective solutions aligned with the highest customer priorities for decades to come,” Greg Hayes, chief executive of United Technologies, said in a statement. After the deal closes, Hayes will be chief executive of the newly combined firm.
About Ben Werner Ben Werner is a staff writer for USNI News. He has worked as a freelance writer in Busan, South Korea, and as a staff writer covering education and publicly traded companies for The Virginian-Pilot in Norfolk, Va., The State newspaper in Columbia, S.C., Savannah Morning News in Savannah, Ga., and Baltimore Business Journal. He earned a bachelor’s degree from the University of Maryland and a master’s degree from New York University. Follow @Wernertime//platform.twitter.com/widgets.js
This is a merger, not an acquisition, so share holders should be happy about the outcome, especially Raytheon.
Raytheon employees in support areas such as IT and real estate management are going to take a big hit.
Raytheon destroys everything it touches. First they do is cut salaries and have massive layoffs.
Could be. They seem to use a bottom line operational method. Raytheon has almost no debt to speak of and a stable of very profitable product lines. Everything else is considered a financial burden to be reduced to the minimum.
“Raytheon employees in support areas such as IT and real estate management are going to take a big hit.”
I don’t think so. I think there is not a lot of overlap in what the two companies do, not much duplication of personnel, and I doubt there will be any big degree of shuffling of offices and office space. In fact, I imagine to the extent there is any synchronization of internal IT systems, there will be more jobs initially, not less. There may not even be less in the long run. If anything United Technologies will be calling on some work from Raytheon staff that they might have previously contracted for from the outside.
Raytheon already outsources it's IT services to CSC.
Gee, that was my experience with UTC.
Raytheon pretty much sucks as a company, United Technologies isn’t any better.
Like R&D, for example?
I've lived and died in that movie several times. No R&D, no future.
Welcome to my world.
Welcome to my world.
Or vice-versa...
Well, as the Raytheon people my husband works with understand it, and they are as susceptible to error as anybody who gossips around the water cooler, the headquarters is going to be in Massachusetts (same state Raytheon is already in). There is a rumor that the Space division will consolidate in TX, which would move jobs from California, but that rumor has arisen before, only to not pan out. Other than that, there is uncertainty, but not a lot of undue worry or panic among the employees, because there is not a lot of overlap in the two businesses.
We shall see. I vote for dear hubby’s retirement before anything unusual happens, personally, but he will do what he things is best when the time comes.
United Technologies and Raytheon are going to wreck a few towns. I think East Hartford will be hit very hard. (East Hartford is the Hometown of Pratt-Whitney and I have a feeling Raytheon will send jobs elsewhere.)
My dad was a manager of UTC... for the first 25 years he was with UTC, he loved it, the last 8 years, the higher ups wanted him to lie about if X will be profitable. Dad retired when UTC had a buy out he got 75% of his salary...
Has he heard anything about the Tucson operation?
I have not heard anything from him about Tucson. I’ll ask, though.
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