Big merger - Raytheon and UT

pron · by **pron** » 10 Jun 2019, 12:07

United Technologies aerospace and defense contractor Raytheon will officially merge.
The combined company will be called Raytheon Technologies.
https://www.theverge.com/2019/6/9/18658 ... tor-merger

The deal will see United Technologies, which produces airplane components and is made up of Collins Aerospace and Pratt & Whitney, merge with Raytheon, which manufactures everything from missiles to communications equipment for the military. The deal is expected to close in the first quarter of 2020, and doesn’t include two of United Technologies’ subsidiaries, Otis Elevators, and Carrier, which will both be spun off into different companies next year.

disconnectedradical · by **disconnectedradical** » 10 Jun 2019, 14:54

Don't know how I feel about all these mergers.

vilters · by **vilters** » 10 Jun 2019, 15:04

Too much power in too few hands.
With less competition, they can pull the prices up.

But who cares, it is taxpayers money, so who cares?

vilters · by **vilters** » 10 Jun 2019, 15:07

With Boeing having the 737-Max scandal to pay for, (and that is gonna be HUGE ! ! ! ! ! !), why not merge with LM?

In a few months they can buy Being for an apple and an egg.
Or get it for free if LM is willing to pay off Boeings debts.

mixelflick · by **mixelflick** » 14 Jun 2019, 14:44

Too much expertise, power etc in one place. Removes competition, which is part of the fundamental success story that is capitalism.

We are already down to 2 (big) defense contractors for fighters. If the consolidation keeps up, it's going to bite us in the end. Let's say you put specs out for PCA. Lockheed Martin comes in with a proposal, and Boeing does too. They both meet specs but are radically different in appearance and how they achieve those specs. The loser isn't always. Look at what the YF-17A morphed into for the Navy.

Once you have just one group of engineers arriving at one solution, you've lost something that's priceless - competition. Look at what Northrup/McDonnell Douglas came up with for the ATF. I'm not going to argue which plane was superior, but the YF-23A could have paved the way for even more advanced technologies. Hopefully, it exists and is flying in some form or fashion today, as was previously alluded to.

Without competition, it would have never been built..

popcorn · by **popcorn** » 15 Jun 2019, 00:23

At first glance it looks like a vertical merger between two companies with complementary product lines. Resulting entity should be more competitive.