RAYTHEON STOCK ANALYSIS: Third Largest DEFENSE CONTRACTOR
News of the day: $MERL.L being acquired by $BX and the Lego family. Also, $AAPL chief designer Jony Ive announces his departure from the company.
Let's now talk about something else that has been in the news lately, the $UTX - $RTN merger. It will be a merger of equals, which means that the shares of both companies are going to be retired and shares of the new company Raytheon Technologies will be offered. Raytheon Technologies will be the second largest aerospace company in the world behind $BA and ahead of $LMT .
$RTN, itself, is currently the third largest defense contractor in the world behind Boeing and Lockheed Martin with 80% of their revenues come from the US government and its allies. Raytheon does not make any aircraft anymore but they make aircraft parts, missiles, rockets/satellites part and are also involved in cybersecurity. The company was founded in 1922 by Vannevar Bush who also invented the differential analyzer(a precursor of the modern computer), was one of the founders of the internet and also was the first person to theorize the PC and world wide web in an essay called, "As we may think" in 1945.
Overall, I will say that Raytheon stocks are currently at a good price and the merger will be a good thing for Raytheon(although $UTX shareholders got a better deal). But this merger will not only affect Raytheon but the whole aerospace and defense industry making it less competitive.
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