A PYMNTS Company

UTC, Raytheon Deal Wins US Antitrust Approval

By  |  March 29, 2020

The US Justice Department has approved United Technologies Corporation’s (UTC) planned merger with Raytheon, subject to conditions, Reuters reported. 

UTC agreed in June to combine its aerospace business with US contractor Raytheon and create a new company worth about US$121 billion, in what would be the sector’s biggest ever merger. It won EU antitrust approval earlier in March. 

To win US approval, the companies agreed to divest Raytheon’s military airborne radios business, including facilities in Indiana and Florida, and UTC’s military global positioning systems, including a facility in Connecticut. 

The businesses are to be sold to BAE Systems or another buyer approved by the Justice Department. The companies are the only Defense Department suppliers for military airborne radios and military GPS systems for air and sea, the Justice Department stated. 

The Justice Department stated that the two companies were among the few companies that made components for certain military satellites, including those that warn of missile launches. Because of this, the department also required the companies to sell UTC’s big space-based optical systems businesses.

Full Content: PYMNTS

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.