Paris Air Show 2019: Mega-merger between UTC and Raytheon
As expected UTC and Raytheon announced a mega-merger on the eve of the Paris Air Show. An operation that cannot leave Airbus, Thales, MBDA and Safran indifferent.
After merging with Rockwell Collins, the American consortium UTC has just performed a very similar operation, although much more bigger with the U.S. defense contractor Raytheon, specialized in weapons and electronics manufacturing. This megamerger was just announced on Monday, 10th June, just a few days before the opening date of the Paris Air Show. Finalized for the first half-year of 2020, the operation is giving birth to a world class super heavyweight of the civil airspace field (motors with Pratt & Whitney, avionics systems, seats and electronics with Collins Aerospace) and the defense field (Raytheon). This will not be without consequences for European compagnies such as Airbus, Thales, Safran and MBDA, which in the end should think of a European counterweight. In fact, the future giant that will originate from this merger between UTC and Raytheon, whose turnover corresponds to a $100 billion, will be in direct competition with these four Europeans groups. Meanwhile, this operation between UTC and Raytheon confirms the refocusing of the first on airspace and defense fields. As a matter of fact, UTC is still trying to divest its Otis elevator and Carrier air conditioning activities while, in the background, a rationalization of defense costs is occurring in the USA after several blazing years. The merger between Harris Corp. and L3 Technologies was the first step.