Raytheon Technologies Shares Begin Trading After Merger

Raytheon Technologies shares began trading after Raytheon and United Technologies merged. The stock of Carrier and Otis, units spun off by United Technologies, also began changing hands.
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Shares of Raytheon Technologies, the company created by the merger of Raytheon and United Technologies, began trading Friday under the symbol RTX.

Last year, the industrial conglomerate United Technologies and defense contractor Raytheon agreed to join hands in a $100 billion deal the two billed as a merger of equals.

United Technologies holders control 57% of the company, eight of the new company’s 15 directors come from UTX, and UTX Chief Executive Greg Hayes assumes the same role at Raytheon Technologies .

Before the merger, United Technologies had decided to spin off its Carrier building systems unit and its Otis elevator division. Those two stocks began trading Friday as well, under the symbols CARR and OTIS respectively.

Not everyone had been impressed with the merger. Activist investors, including Bill Ackman, CEO of Pershing Square Capital Management, and Daniel Loeb, CEO of Third Point, complained that United Technologies was excessively broadening its focus.

“Raytheon brings very little applicable technology to [United Technologies] aerospace offerings,” Loeb wrote in a letter to United Technologies’ board. “The benefits of Raytheon’s cyber and data analysis capabilities are not quantifiable and could be replicated through commercial collaboration or supply agreements.”

But Morningstar analyst Joshua Aguilar likes the Carrier and Otis spinoffs. The spinoffs will “unlock considerable shareholder value based on our sum of the parts analysis,” he wrote in a report.

“Ultimately, we believe the board rightly realized that UTC had underinvested in these two segments, thereby missing out on certain growth opportunities.”

At last check, Raytheon Technologies shares traded at $49.79, Carrier at $14.76 and Otis at $47.28.