“AscenariowherebyRaytheonwouldbe
competinglonger-termagainstLockheed
Martinanda combinedNorthrop+ (United
Technologies)mayhavebeenanunacceptable
outcomeofconsolidationforRaytheon.”
DeNardialsooncesawBoeingasthelikely
buyerofRaytheon,butsaidit mayhavebeen
hobbledbythegroundingofitsfleetofits 737
Maxaircraft.
Raytheonshareholderswillreceive2.33
sharesinthenewcompanyforeach
Raytheonshare.Oncethemergeris complete,
UnitedTechnologiesshareholderswillown
approximately57%ofthecompany;Raytheon
shareholderswillowntherest.
Twoyearsafterthedealcloses,Hayeswill
alsobecomechairman.Untilthen,Raytheon
ChairmanandCEOTomKennedywillbethe
executivechairman.Thecompany’sboardwill
haveeightdirectorsfromUnitedTechnologies
andsevenfromRaytheon.
BothexecutivessaidMondaythatthereis
littleoverlapbetweenthecompaniesandthat
theydonotanticipatepushbackfromanti-
monopolyregulators.
However,PresidentDonaldTrumpvoiced
concernsaboutthedealwhenhephonedin
totheCNBCearlyMonday.
“WhenI hearthey’remerging... doesthat
takeawaymorecompetition?”askedTrump.
“Itbecomesonebig,fatbeautifulcompany,
butI havetonegotiate,meaningtheUnited
Stateshastobuythings.Doesthatmakeit
lesscompetitive?”Image: Mandel Ngan