Stock of the Day: United Technologies (UTX)
Raytheon and United Technologies have announced an all-stock merger to form an aerospace and defense giant that will be known as Raytheon Technologies Corporation.
Importantly, it is believed that the deal will not require Chinese regulatory approval and should face little scrutiny from the Department of Justice, as there is little overlap in sales between the two companies, making any need for divestments minimal.
Per the terms of the deal, Raytheon shareholders will get just over 2.3 shares in the new company for each share of Raytheon and is not expected to impact United Technologies plans to spin off Otis, their elevator division, or Carrier, their air conditioning unit.
Shares of United Technologies are down just over 1%, while Raytheon shares are up close to 1% on Monday Morning.
Real Money will be providing in-depth coverage on the merger all day and for Jim Cramer's take get over to TheStreet's Facebook page where he will be discussing it live from the floor of the NYSE at 10am EST.