The merger, announced Sunday, will close in the first half of 2020 after United Technologies completes the separation of its Otis and Carrier businesses.
Trump said in an interview on CNBC Monday morning that it's "hard to negotiate" as competition in the defense industry shrinks.
"Saudi Arabia's precision-guided munitions are responsible for the vast majority of deaths documented by human rights groups", In These Times found. "S$3 ince 2009, Saudi Arabia has ordered more than 27,000 missiles worth at least $1.8 billion from Raytheon alone". "It becomes one big, fat lovely company", Trump said. United Technologies provides primarily commercial plane makers with electronics, communications and other equipment, whereas Raytheon mainly supplies the US government with military aircraft and missile equipment.
"Does [the merger] make it less competitive?"More news: The Elder Scrolls: Blades heads to Nintendo Switch later this year
Later, Trump said he hoped the merger could go forward, but reiterated his concern.
Both companies' shares stand to benefit because of the potential synergies, which could free up capital that may be deployed, Jefferies wrote in a note. The new company will be called Raytheon Technologies.
Even adjusting for the spinoffs, the combined market value of the merged company would be above $100 billion.
"I think once [President Trump] understands the benefits of this merger in terms of what it's going to do to reduce costs to the government, what it's going to do to improve the technology of the US government and our defense profile, and what it's going to do for jobs in this country, I think he's going to be supportive, as he has been for both companies over the course of this administration", United Technologies Chairman and CEO Greg Hayes told CNBC soon after the president called in.More news: Manchester United refuse to talk to Real Madrid about Pogba
The merger, if approved by the government and the two companies' shareholders, would create what the Washington Post described as a "military-industrial behemoth" with the power to rival Lockheed Martin, the world's largest defense contractor.
The two companies argue they have very limited existing business overlap, with United Technologies specialising in supplying electronics to commercial plane makers, while Raytheon mostly manufactures guided missiles such as the anti-aircraft Patriot, which it sells to the USA government for up to $5 million each. Connecticut-based United Technologies was founded in 1934 and serves the aerospace and building sectors.
The combined company will have some $74 billion in sales.
The headquarters will be in the Boston area; now United Technologies is based on Farmington, Connecticut, while Raytheon's headquarters is in Waltham, Massachusetts. He added that both companies are "great" but said he anxious that the merger would "take away more competition". "We truly believe that we're going to get this done relatively quickly", Gregory Hayes, chief executive officer, United Technologies, said in a call with analysts.More news: Trump and Macron's figurative tree of friendship has withered and died
UTX and RTN have followed in the footstep of Harris (HRS) and L3 Technologies (LLL), which past year announced an all-stock merger. In two years, Hayes will rise to the role of chairman and CEO, the company said. Most of Raytheon's revenue comes from the Pentagon and USA intelligence agencies.