In a statement, the U.S. Justice Department stated, it has approved the planned merger of United Technologies Corporation with Raytheon Co, subject to certain conditions.
In June 2019, UTC agreed to combine its aerospace business with Raytheon in order to create a new company which will be worth about $121 billion, in what will be the sector’s biggest ever merger.
The deal won approval from the European Commission in March.
So as to win approval from U.S. antitrust regulators, the companies agreed to divest Raytheon’s military airborne radios business, including facilities in Indiana and Florida, and UTC’s military global positioning systems, including a facility in Connecticut.
These businesses will be sold to BAE Systems Inc or another buyer after due approval from the Justice Department.
“The companies are the only Defense Department suppliers for military airborne radios and military GPS systems for air and sea”, said the Justice Department.
These two companies were among the few companies that make components for certain military satellites, including those that have the ability to warn against missile launches. As a result, the DoJ also required the companies to sell UTC’s space-based optical systems businesses.