United Tech to merge aerospace biz with Raytheon to create $121 bn giant

United Technologies Corp agreed on Sunday to combine its aerospace business with US contractor Raytheon Co and create a new company worth about $121 billion, in what would be the sector’s biggest ever merger.

The deal would reshape the competitive landscape by forming a conglomerate which spans commercial aviation and defence procurement. United Technologies provides primarily commercial plane makers with electronics, communications and other equipment, whereas Raytheon mainly supplies the US government with military aircraft and missile equipment.

While United Technologies and Raytheon have some common customers, their business overlap is limited, an argument the companies plan to make once US antitrust regulators start scrutinizing the merger.