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Raytheon & UTX to merge?


Zorrofan

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Seems like it would be dumb idea for the government to approve it, there are already only a few big defense contractors.

 

Surprised to see Trump come out against the deal. But I highly doubt anything will be done. It seems our government is perfectly fine with "as close to monopoly as you can get" aka duopoly as long as they feel they have some measure of control or influence over said company. People like to say China's government is too closely tied with private industry (which they are) but fail to see all the corruption right here in the States.

 

Disclaimer: I have been long defense companies for basically ever. Defense sector is basically free money over the long term. And if companies aren't selling to the US they are selling to other nations. Maybe I'm a hypocrite for speaking against the sector while also investing?

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Not my idea, but on another board a smart poster mentioned one thing that makes sense to me: it is  interesting that the headquarters of the combined company will move to MA, despite RTN being the junior company, in terms of size. I believe UTX may consider moving out of CT (a basket case in terms of taxes) to MA as a very nice side benefit. Perhaps the same applies to management The head honchos May just like the idea of moving to the greater Boston area from Hartford, CT. I am sure they will get a nice relocation package.

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