United Technologies agreed Monday to buy Raytheon in an all-stock transaction whereby UTX shareholders would own around 57% of a combined company with annual sales of around $74 billion.
Why it matters: It would be the largest-ever merger in the aerospace and defense contracting space, and is sure to be causing consternation at Boeing and Airbus.
But first: UTX still plans to complete the previously-announced spin-outs of its Otis elevator and Carrier air conditioner businesses.
The bottom line: "The deal would reshape the competitive landscape by forming a conglomerate which spans commercial aviation and defense procurement. United Technologies provides primarily commercial plane makers with electronics, communications and other equipment, whereas Raytheon mainly supplies the U.S. government with military aircraft and missile equipment," write Reuters' Harry Brumpton and Kate Duguid.
