Who are the two companies that Donald Trump doesn’t want to merge?

Following the news from earlier this week, that US President Donald Trump is ‘concerned’ about the proposed £96bn merger between two of America’s biggest defence contractors – Business Leader looks into who they are, and why Trump is worried.

Raytheon

Raytheon Company is a global technology and innovation firm that specialises in defence, civil government and cybersecurity solutions.

Founded in 1922, Raytheon provides state-of-the-art electronics, mission systems integration, military products and services, sensing, effects and mission support services.

Headquartered in Waltham, Massachusetts, the company has become a world leader in defence electronics – however, they have a long history in US military and advanced tech.

For example, they were a key partner of the Apollo 11 missions in the 1960s – and were the team that designed the space guidance tech that directed the space craft.

Throughout the Vietnam War and the Gulf conflict in the proceeding decades, they were innovators of ballistic missiles and war aircraft technologies.

UTC Aerospace Systems

Part of the Collins Aerospace group, UTC Aerospace Systems was founded in August 2012 when the parent company merged with Hamilton Sundstrand and the Goodrich Corporation.

Following record sales of over $23bn last year, the company announced its intention to grow across the aerospace and defence market – leading to this week’s proposed merger.

Their main focus is around aircraft systems, through its power, control and sensing technology – arguably the world’s most advanced.

Based in West Palm Beach, Florida, they have manufactured nearly all technical aspects of a modern air force plane or helicopter.

The company’s near 70,000-strong workforce also offer repair services and technical support to the various branches of the US military as part of their contracts, and so many employees are based in or near US Army bases.

UTC also supply aerospace technology to many other countries armies, including Japan, Canada, Germany and France.

Why is Trump ‘concerned’?

During a CNBC broadcast earlier this week, Trump told the US public that the merger could harm competition, making it harder for the government to negotiate new contracts.

Senior members of the two companies are set to meet Trump this week to discuss the proposal, in a move that could potentially change the future of the US military.

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