Navigating turbulence in the Raytheon technologies merger - drivers of the merger: integration challenges and strategic mergers

Abstract

The UTC-Raytheon merger faced significant integration challenges due to UTC’s prior M&A activity, including the Rockwell Collins acquisition and Otis and Carrier divestitures. Regulatory scrutiny from U.S. and European authorities led to required divestitures, complicating the process. As a "merger of equals," aligning UTC’s commercial aerospace focus with Raytheon’s defense operations added complexity. UTC’s experience in large-scale acquisitions provided advantages but also increased integration risks. Successfully navigating these hurdles was crucial to realizing projected synergies and establishing Raytheon Technologies as a leading aerospace and defense powerhouse.