Bloomberg – United Technologies Corp. agreed to buy Raytheon Co. in an all-stock deal, forming an aerospace and defense giant with $74 billion in sales in one of the industry’s biggest transactions ever. The new entity will be called Raytheon Technologies Corp. when the deal closes in the first half of 2020, after United Technologies completes the separation of its Otis elevator and Carrier air-conditioner businesses, the companies said in a statement Sunday. While billed as a merger of equals, current United Technologies shareholders will own most of the combined company, which is expected to be worth well over $100 billion, according to Bloomberg Intelligence.

So earlier this week the street got word that United Technologies and Raytheon would be merging to create a behemoth of a company. Both stocks have pretty much tracked the S&P YTD but have had pretty shitty returns of the past 365 days. I’m no engineer, but combining fighter jet engines with the best missile systems in the world sounds like the fat little kid in North Korea is fucked if he tries to pull some bullshit. I want to see the biggest and baddest thing these guys can put together. I live within a mile and a half of two Raytheon plants and I’m convinced that it must be the safest area in the country. There’s no doubt in my mind that when Donny T presses the red button in the Oval Office, missile silos will emerge alarmingly close to me.

“Does that make it less competitive?” @realDonaldTrump on potential Raytheon-United Technologies merger $RTN $UTX pic.twitter.com/IwXxHbybeR— Squawk Box (@SquawkCNBC) June 10, 2019

Speaking of our President, Trump got on CNBC and questioned the deal’s ability to make the industries less competitive. Tariff Man, M&A Man, Economist, there is really nothing that this guy cannot do. So what if they increase the prices Donny? Lever the fuck up like a man and buy the shit out of these Engines, Missiles, and Radars.

Bill Ackman, of Pershing Square Capital, also jumped in on the hate train as he is a significant shareholder of UTX. He claimed he could not see the strategic logic behind the move that essentially makes United Tech. 50/50 in commercial and military contracting. UTX is up 13% over the past five years and RTN is up 92%. United Technologies is acquiring a lesser company? Alright Bill, time to short Herbalife some more.

One blog down and many more time come.

Stay Poor People