Anti-trust approval for UTC, Raytheon deal

131

The US Justice Department approved United Technologies Corporation’s planned merger with Raytheon, subject to conditions.

UTC agreed in June to combine its aerospace business with US contractor Raytheon and create a new company worth about $121 billion, in what would be the sector’s biggest ever merger. It won EU antitrust approval this month.

To win US approval, the companies agreed to divest Raytheon’s military airborne radio business, including facilities in Indiana and Florida, and UTC’s military global positioning systems, including a facility in Connecticut.

The businesses will be sold to BAE Systems or another buyer approved by the Justice Department.

The companies are the only Defence Department suppliers of military airborne radios and military GPS systems for air and sea, the Justice Department said.

The Justice Department said the companies were among the few making components for military satellites, including those warning of missile launches. This was one reason the department required the companies to sell UTC’s space-based optical systems businesses.