Over the weekend, defense contractor Raytheon and aerospace company United Technologies announced that they plan to merge. They’re calling it a “merger of equals,” an all-stock deal that would result in a new company, Raytheon Technologies.
If the deal makes it past regulators, the $100 billion company would become the second-largest aerospace and defense company in the U.S., behind Boeing. The companies say the proposed merger’s important for them to keep their balance in shifting markets. “They’re looking at it, in this acquisition, truly as a long-term view that this combined company will be able to ride the ups and downs of the markets,” said Doug Gates, head of aerospace and defense for KPMG.
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The pace at which government contractors are engaging in mergers & acquisitions has increased notably in recent years, as a stream of recent stories in the Washington Post and New York Times have reported.