UTC, Raytheon Merger Effective on Friday; Otis, Carrier to be Set Loose

If this was any other time, consummation of the merger of Raytheon Company and United Technologies Corporation (UTC), and the simultaneous spin-off of UTC’s Carrier and Otis divisions, would be the topic of considerable conversation.  This isn’t any other time.  But the merger is due to proceed on Friday, as planned, one more dramatic change at a time when nothing is as it once was.

Raytheon and UTC have received the necessary regulatory approvals for their all-stock merger of equals and expect to close the merger prior to the opening of trading on the New York Stock Exchange (NYSE) on April 3, which is also the distribution date for UTC’s spin-offs of Carrier and Otis.

Upon the closing of the merger, United Technologies will be renamed Raytheon Technologies Corporation, and its common stock will trade on the NYSE under the ticker symbol "RTX."

"We are pleased to have received all the necessary regulatory approvals, which clears the way for the successful completion of our merger of equals," said Tom Kennedy, Raytheon Chairman and CEO. "We are more than just two businesses coming together – Raytheon Technologies will be uniquely positioned to deliver advanced and innovative solutions to our customers while delivering significant value to shareowners."

"We are excited about the future of Raytheon Technologies. I am exceptionally proud to lead this new organization and the talented people who serve our nation, its allies and our commercial aerospace customers so well," said Greg Hayes, United Technologies Chairman and CEO.  "I also want to thank both the Raytheon and UTC teams who have worked tirelessly to complete the merger and integration work and to stand up both Carrier and Otis as independent public companies, creating three world class organizations." 

Hayes will be the chief executive of the combined company. However, the companies announced last year that the combined business would be based in the Boston area, and not in Farmington, CT, where UTC moved its headquarters from Hartford two years ago.  Raytheon CEO Tom Kennedy will stay on as executive chairman for two years, before Hayes takes over as chairman, according to published reports.

Otis headquarters are expected to remain in Farmington.  Carrier will be headquartered in Florida.  The regulatory process also requires the divestitures of Raytheon's military airborne radios business and United Technologies' military Global Positioning System (GPS) and Space Optical Systems businesses, which are expected to be completed following the merger.

Fewer than 100 employees are slated to relocate to Raytheon’s Waltham, MA headquarters after the merger of the two companies is completed this week. The company will reportedly put the relocations on hold until after the coronavirus pandemic subsides.

Two week ago, United Technologies Corp. (NYSE: UTX) announced that its Board of Directors approved the previously announced separations of Carrier and Otis.  Carrier's investor presentation is available at www.Corporate.Carrier.com and Otis' investor presentation is available at www.otis.com. Carrier will trade under the ticker symbol "CARR" on the NYSE and Otis will trade under the ticker symbol "OTIS" on the NYSE.

"We are taking another important step in the transformation of UTC and the establishment of two independent companies that are leaders in their respective industries with attractive investment profiles," UTC Chairman and Chief Executive Officer Gregory Hayes said in a company news release issued on March 11. "As standalone public companies, Carrier and Otis are each well-positioned to drive sustained growth and innovation, with more focused business strategies that will enable them to maximize value for their customers and shareowners."

Hayes continued, "Executing the separations of Carrier and Otis is also a major milestone to completing the merger of UTC's aerospace businesses with Raytheon to create Raytheon Technologies, the premier aerospace and defense systems and services provider. Together, we will have a balanced and diversified portfolio with best-in-class technologies to address a full range of customer priorities and drive sustainable growth over the long-term."