The combined company's headquarters will be in Raytheon's home state of MA, marking the seismic loss of a homegrown giant for CT.
■ The new company would have a stock market value of about $100 billion, nearly double Raytheon's current value, after United Technologies completes the previously announced spinoffs of its Otis elevator and Carrier building services divisions.
The combined company would have about $74 billion in sales this year, making it the second largest aerospace group in the world after Boeing.
In a call with investors Monday morning, executives from both companies offered vague answers when asked whether they have received feedback from the Defense Department on the issue. That leaves the aerospace business, anchored by its Pratt & Whitney jet engines and avionics components, including those made by Rockwell Collins, which Hayes bought a year ago for $23 billion.
"Our two companies have iconic brands that share a long history of innovation, customer focus and proven execution", said United Technologies Chairman and CEO Greg Hayes in a statement.
Raytheon chief Tom Kennedy will be its executive chairman.
At United Technologies, Hayes is drastically remaking the company.
Talks of a merger between Raytheon and UTC have always been on the grapevine, and while each firm has its specific reasons for wanting to merge, the combined firm will help both better cope with potential downturns in the defense and aviation industries.
Two years after the deal closes, Hayes will also become chairman.
The Defense Department will have to sign off on the deal before it can be finalized. The latter firm had already announced plans last November to divest its Otis elevator and escalator and Carrier heating and cooling divisions. "It's important to note that almost all of UTC's 19,000 employees will remain in CT, with roughly 100 moving to the new headquarters". Every US military operation and regime change campaign since the Gulf War of 1991-from Iraq and Afghanistan to Yugoslavia, Libya, Somalia, Yemen and Syria-have included the launching of Raytheon-made Tomahawk cruise missiles, mostly from naval ships and submarines. "This serves as reminder that we live in an increasingly competitive economy, domestically and internationally". The Hartford Courant said about 100 UTC jobs would move to MA. "It becomes one big, fat handsome company", Trump said. "We will be reaching out to them, as they are understandably anxious about what effects this will have on the workforce, and will do anything we can to support them".
Matt Stoller, fellow at the non-profit Open Markets Institute, said Trump is correct to raise anti-competition concerns over the proposed merger-while expressing skepticism that the president will hold to that position.
"When I hear they're merging, does that take away more competition?" said Trump. "It becomes one big fat handsome company, but I have to negotiate, meaning the United States has to buy things".
But most analysts don't see that as a concern.
A model of the Patriot anti-missile system is seen at Raytheon's exhibition center at the Farnborough aerospace show, in Farnborough, U.K.in 2008.