United Technologies (UTX) and Raytheon (RTN) announced a merger on June 9. If successful, Raytheon's shareholders will end up with 43% in the new company named Raytheon Technologies and be given 7 representatives from 15 directors on the board.
The deal was immediately resisted by an activist-shareholder due to a lack of strategic sense. It seems right. The overlap in aerospace sales is less than 1%, according to the United Tech's CEO himself. The deal is complementary in nature. United Tech will get significant free cash flow generation from missile defense