United Technologies President and CEO Gregory Hayes
Richard Drew | AP
Raytheon and United Technologies' large aerospace business are in late-stage talks to combine in a giant deal for the aviation and defense sectors, according to a source familiar with the matter.
The companies have a combined market value of nearly $166 billion.
The deal would give defense contractor Raytheon exposure to the booming commercial aerospace sector through the United Technologies' unit, which makes everything from high-value jet engines and competes with General Electric, to cockpit controls, airplane seats, interiors. That would diversify defense component supplier Raytheon and consolidate the aerospace and defense companies that supply giants like Airbus and Boeing.
United Technologies in November 2018 said it would spin off its Otis elevator business and its Carrier air conditioning business into separate companies. The remaining aerospace business would be combined with Raytheon, the person said.
The deal, which could still fall apart, could be announced as early as Monday, the source said. The deal was reported earlier by The Wall Street Journal.
This is breaking news. Please check back for updates.
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