The merger of United Technologies and Raytheon may lead to the emergence of the second largest defense company in the world. The terms of the deal are still under discussion.

One of the largest defense and aerospace companies in the United States, United Technologies and Raytheon, are negotiating the merger. This is with reference to sources writes The Wall Street Journal.

The total value of the company, which can be the result of the transaction, can reach about $166 billion. According to Forbes, the capitalization of Raytheon in 2019 reached $51,1 billion. The company employs 67 thousand people. Raytheon ranks 304-th place in the list of the world’s largest companies according to the magazine, and 89-th place — in the list of public companies in the United States in 2018. This company is one of the “big three” manufacturers of weapons and military equipment for the US army, along with Boeing and Lockheed Martin. Thus, the company produces anti-aircraft missile systems Patriot, equipment for b-1 Lancer and B-2 Spirit bombers, AGM-88 HARM, and BGM-109 Tomahawk missiles.

Capitalization of United Technologies twice — $118,1 billion. The number of employees is 240 thousand. In the list of the largest companies in the world, it occupies 78th place. In the US in 2018, it took 34th place. The company includes manufacturers such as Pratt & Whitney (turbojet engines for military aircraft and civilian Airliners), the world’s largest manufacturer of elevators, escalators Otis, one of the leaders in the production of climatic systems Carrier Corporation.

The exact terms of the transaction are not yet known. According to the WSJ, it is highly likely that most of the shares will belong to the shareholders of the larger United Technologies. The new facility will become the world’s second largest aerospace and defense company in terms of sales after Boeing. Her annual income may exceed $70 billion. The Head of the combined company should be the Chairman of the Board of United Technologies-Greg Hayes. The Chairman of the Board will be Thomas Kennedy, Chairman of the Board of Directors and Chief Executive officer of Raytheon.