Raytheon (RTN) - Get Report and United Technologies (UTX) - Get Report have announced an all-stock merger to form an aerospace and defense giant that will be known as Raytheon Technologies Corporation.
Importantly, it is believed that the deal will not require Chinese regulatory approval and should face little scrutiny from the Department of Justice, as there is little overlap in sales between the two companies, making any need for divestments minimal.
Per the terms of the deal, Raytheon shareholders will get just over 2.3 shares in the new company for each share of Raytheon and is not expected to impact United Technologies plans to spin off Otis, their elevator division, or Carrier, their air conditioning unit.
Shares of United Technologies are down just over 1%, while Raytheon shares are up close to 1% on Monday Morning.
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