The top executives of Raytheon and United Technologies defended their plans to merge and contended that their proposal will create jobs on Monday, even as President Donald Trump questioned the merger’s effect on competitiveness within the defense contracting industry.
Their defense of the merger and the president’s concerns played out on CNBC, the morning after news of the potential creation of a massive U.S. aerospace and defense company merger broke over the weekend.
Tom Kennedy, Raytheon’s chairman and CEO, and Greg Hayes, United Technologies’ chairman and CEO, appeared on the financial news network's Squawk Box show to tout the all-stock deal, which is expected to close in the first half of 2020. The combined company would be called Raytheon Technologies and pull in $74 billion in 2019 sales.
“We’re complementary, we’re not competitive,” Kennedy said. “I don’t remember the last time we competed against United Technologies.”
Raytheon, (NYSE: RTN) based in Waltham, manufactures missiles and military aircrafts, while Farmington, Conn.-based United Technologies (NYSE: UTX) makes electronics and communications equipment for commercial airplane makers, including Boeing (NYSE: BA).
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