Two of the world’s largest defence companies – United Technologies and Raytheon – are planning a merger to create an “aerospace and defence powerhouse”. The combined market value of both companies is over US$160 billion, and their merger would make them bigger than Boeing, and second biggest supplier to the US military after Lockheed Martin. The new company will be called Raytheon Technologies Corp. and is expected to have nearly $74 billion in annual sales. The boards of both companies have unanimously agreed the deal, which is expected to close in the first half of 2020. The combined company will produce everything from Tomahawk missiles to the engines for F35 fighter jets, and employ around 180,000 people around the world.
President Trump raised concerns that the merger would make it more difficult for the USA to negotiate defence contracts as competition between arms companies would be weaker.