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UTC-Raytheon Merger Deal Set to Close Friday; Thomas Kennedy, Greg Hayes Quoted

Jeff Brody
Thomas Kennedy

United Technologies Corp. (NYSE: UTX) and Raytheon (NYSE: RTN) have set the closure date of their all-stock merger for Friday, April 3, after securing all the regulatory clearances needed to close the transaction.

According to a joint statement, the combined company will operate as Raytheon Technologies and trade under the “RTX” ticker symbol on the New York Stock Exchange.

Both parties expect April 2 to be the last day of trading for Raytheon shares and noted that each share of Raytheon common stock will be converted into the right to receive 2.3348 Raytheon Technologies shares.

Thomas Kennedy, chairman and CEO of Raytheon and a three-time Wash100 awardee, said both companies are pleased to have received all the needed approvals to complete the merger and form Raytheon Technologies.

“We are excited about the future of Raytheon Technologies. I am exceptionally proud to lead this new organization and the talented people who serve our nation, its allies and our commercial aerospace customers so well,” said Greg Hayes, chairman and CEO of UTC.

UTC set April 3 as the distribution date for the spinoffs of its Otis and Carrier subsidiaries. Common stocks of Otis and Carrier will kick off trading on NYSE under the ticker symbols “OTIS” and “CARR” respectively upon the spinoffs’ completion.

The Department of Justice on Thursday gave Raytheon and UTC an antitrust approval to proceed with their merger. The approval comes with a proposed settlement that requires both companies to divest to a U.S. approved-buyer Raytheon’s airborne tactical radios business and UTC’s military GPS business and its large space-based optical systems unit to maintain competition.

BAE Systems’ U.S. subsidiary signed an agreement in January to acquire UTC’s military GPS business and Raytheon’s airborne tactical radios business.

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