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United Technologies, Raytheon To Combine In All-stock Merger Of Equals

Aerospace company United Technologies Corp. (UTX) and defense company Raytheon Co. (RTN) have entered into an agreement to combine in an all-stock merger of equals.

The deal was unanimously approved by the Boards of Directors of both companies.

Under the deal terms, Raytheon shareowners will receive 2.3348 shares in the combined company for each Raytheon share.

Following the merger closure, United Technologies shareowners will own approximately 57 percent of the combined company, while Raytheon shareowners will own approximately 43 percent.

The merger is expected to close in the first half of 2020, after United Technologies completes the previously announced separation of its Otis and Carrier businesses.

United Technologies said the timing of the separation of Otis and Carrier is not expected to be affected by the proposed merger and remains on track for completion in the first half of 2020.

The merger is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes.

The combined company will have approximately $74 billion in pro forma 2019 sales.

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