United Technologies announced on Sunday, that is has chalked out plans to amalgamate its aerospace department with Raytheon and form a new giant manufacturing mother body in the military weapons, aircraft, and aerospace sector.
If this huge merger turns out to be a reality, it will set an astounding instance of consolidation within the aerospace and military industries, which will pave the way of creation of an altogether new concept that will only thrive and boom with the passage of time.
The aerospace sect of Raytheon and United Technologies manufacture the Pratt & Whitney engines, F-35 fighter, and the Tomahawk cruise missiles. The new combined company, christened as Raytheon Technologies will have an expected sales of almost $74 billion in the year 2019.
The military industry has been overweighed by a watchdog named ‘Consolidation’ for quite some time, the proliferation of various noted defense contractors that were so popular even a decade back has shrunk just to some handful of companies. They include Lockheed Martin, Boeing, and Raytheon.
Raytheon is the maker of missiles and radar systems, along with critical control and command technologies that are used by the militaries of various countries all over the world. With government contracts worth billions of dollars into their credit, Raytheon is one of those companies that would stand for gaining from the efforts put up by President Trump to increase spending for military hardware and technology.
The White House recently granted the new company permission to develop state of the art spare parts to be used in the Paveway smart bombs in Saudi Arabia that the company has come up with.
The aerospace wing of United Technologies comes up with engines that are used in commercial Airbuses as well as in the F-35 fighters. However, it has already bought along with other properties, Rockwell Collins for $30 million. Rockwell Collins has been making aircraft parts since long.