30 mars 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

Raytheon-UTC merger wins approval, pending divestitures

By: Jill Aitoro

WASHINGTON — The merger between two defense giants got the green light from the U.S. Department of Justice, under the condition that divestitures already in the works move forward and another piece of business is shed.

According to a March 26 announcement from the DOJ, United Technologies Corp. and Raytheon will need to divest Raytheon's military airborne radios business as well as UTC's military global positioning systems and large space-based optical systems businesses in order to proceed with the proposed merger.

The divestitures would satisfy a proposed settlement from the department's Antitrust Division of a civil antitrust lawsuit to block the proposed Raytheon-UTC merger.

BAE Systems agreed in January to buy Collins Aerospace's military global positioning system business — which is owned by parent firm UTC — for $1.93 billion and Raytheon's airborne tactical radios business for $275 million.

“Today's settlement protects the American taxpayer by preserving competition that leads to lower costs and higher innovation in critical military and defense products,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The merger, as originally proposed, would have eliminated competition in the supply of military airborne radios and military GPS systems, and would have positioned the merged firm to harm rivals capable of making key components for reconnaissance satellites. These horizontal and vertical concerns are resolved by the Division's structural remedy, which includes the divestiture of three separate business units.”

Under the terms of the proposed settlement, the companies need to divest Raytheon's military airborne radios business, including facilities in Fort Wayne, Indiana, and Largo, Florida; as well as UTC's military GPS business to BAE Systems or another approved acquirer.

The proposed settlement would also require the divestiture of UTC's optical systems business, including a facility in Danbury, Connecticut, to an approved acquirer.

Raytheon and UTC announced in June 2019 plans to officially merge into a new entity called Raytheon Technologies Corporation, with the deal at the time expected to close during the first half of 2020.

https://www.defensenews.com/industry/2020/03/27/raytheon-utc-look-to-shed-segments-to-win-merger-approval

Sur le même sujet

  • DSEI : Poland cleared to buy F-35 fleet

    16 septembre 2019 | International, Aérospatial

    DSEI : Poland cleared to buy F-35 fleet

    By: Aaron Mehta WASHINGTON — The U.S. State Department has OK'd Poland to buy the F-35, America's most advanced fighter, setting up the country as the newest customer for the fifth-generation jet. The proposed order covers 32 of the conventional-takeoff-and-landing F-35A variants, with an estimated price tag of $6.5 billion, according to a Wednesday announcement on the website of the Defense Security Cooperation Agency. As with all DSCA notifications, quantities and dollar figures can change during negotiations. While Congress can still act to block the sale, it's expected to run smoothly through Capitol Hill. “This proposed sale of F-35s will provide Poland with a credible defense capability to deter aggression in the region and ensure interoperability with U.S. forces,” the DSCA announcement reads. “The proposed sale will augment Poland's operational aircraft inventory and enhance its air-to-air and air-to-ground self-defense capability.” Poland formally sent its request for the F-35 in May with the goal of replacing its legacy MiG-29 and Su-22 fleets. Procuring the F-35 is part of a broader defense modernization effort from Warsaw, which will see the country spend $47 billion by 2026 on new equipment. Along with the fighters, the proposed package includes 33 F135 engines, electronic warfare and C4 systems, access to the fighter's Autonomic Logistics Information System, a full mission trainer, and other support capabilities. Lockheed Martin is the prime contractor on the plane, and Pratt & Whitney is the engine manufacturer. The deal will include some form of industrial offset, to be negotiated between the companies and Warsaw at a later date. Lockheed executives said Poland will get planes with the Block 4 package installed. Greg Ulmer, Lockheed's vice president and general manager for the program, has expressed an interest in having Poland take part in the industrial base for the planes. “Once Polish companies are approved as our supplier partners, they could make parts not only for the Polish aircraft but also for those supplied to other countries, such as the U.S. or Japan,” Ulmer said. However, Poland shouldn't get its hopes up about becoming a full-on partner with the F-35 Joint Strike Figher program, as the Pentagon has been adamant that the broad industrial participation program is locked in place. https://www.defensenews.com/global/europe/2019/09/11/poland-cleared-to-buy-f-35-fleet

  • Boeing’s Defense Unit Dealt Setback by Pentagon

    26 mars 2021 | International, Aérospatial

    Boeing’s Defense Unit Dealt Setback by Pentagon

    Lockheed Martin and Northrop Grumman, instead of Boeing, were selected to compete to provide a new system aimed at knocking out long-range missiles fired by adversaries, estimated to cost $12 billion.

  • New Phishing Campaign Targets Oil & Gas with Evolved Data-Stealing Malware

    4 avril 2024 | International, Terrestre

    New Phishing Campaign Targets Oil & Gas with Evolved Data-Stealing Malware

    Oil & gas companies beware! Hackers are using the updated Rhadamanthys info-stealer in phishing attacks.

Toutes les nouvelles