US companies Raytheon and United Technologies are merging in a deal that will create one of the world’s largest defence companies.
The merger, announced on Sunday, will close in the first half of 2020 after United Technologies completes the separation of its Otis and Carrier businesses.
Raytheon shareholders will receive 2.33 shares in the new company for each Raytheon share.
The combined company, named Raytheon Technologies, will be based near Boston. United Technologies’ current chairman and chief executive Greg Hayes will be its CEO.
Raytheon chief Tom Kennedy will be its executive chairman.
Waltham-based Raytheon was founded in 1922 and makes missile and cyber security systems. Connecticut-based United Technologies was founded in 1934 and serves the aerospace and building sectors.
The combined companies will have total sales of approximately 74 billion dollars in 2019.