Pre-merger spinoffs; V-22 COD flies; Gremlins drone crashes, and more...
Raytheon and United Technologies have agreed to sell two businesses to BAE Systems for $2.2 billion — if that deal helps them win U.S. government approval for their own merger.
UTC is selling Collins Aerospace’s GPS business for $1.9 billion; Raytheon is its Airborne Tactical Radios business for $365 million.
“The UTC-Raytheon divestitures and the L3 Harris divestiture of a night vision product line, which Elbit purchased are reminders that analysts & planners need to consider non-U.S. firms with U.S. operations as they assess the market landscape in the 2020s for defense,” Capital Alpha Partners’ Byron Callan wrote in a Jan. 20 note to investors.
If it goes through, the deal will be BAE Systems’ first major, strategic acquisition since acquiring Detica in 2008.
Buying Collins’ GPS business would make BAE Systems one of just three companies to build military-grade GPS equipment, Callan wrote. (The others are Raytheon and L3Harris Technologies.)
That’s not all that has to happen before the merger goes through. UTC is spinning off its Carrier and Otis businesses.
Meanwhile, Raytheon announced in October that it would consolidate its five businesses into two. Those are:
- Intelligence, Space and Airborne Systems, the combination of Raytheon’s Space and Airborne Systems; Intelligence, Information and Services; and Forcepoint cybersecurity business.
- Integrated Defense and Missile Systems, the combination of Missile Systems and Integrated Defense Systems.
Roy Azevedo will be president of the Intelligence, Space and Airborne Systems and Wesley Kremer will be president of the Integrated Defense and Missile Systems.
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- Wednesday, Jan. 29: General Dynamics, Boeing & Textron
- Thursday, Jan. 30: Northrop Grumman & Raytheon
- Tuesday, Feb. 4: L3Harris Technologies
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