When is united merger complete

United Technologies and Raytheon merger complete. Published: Apr. Share on Facebook. Email This Link. Share on Twitter. Share on Pinterest. Share on LinkedIn.

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Search more than 2, composites industry suppliers. Read the latest issue of CompositesWorld. Thus, declines in quarterly revenue may drive shares lower in the short term, despite the company's long-term value and current undervaluation. Additionally, some analysts and investors hold that the low amount of cost-cutting synergies make the merger pointless from a shareholder perspective. In the letter, Loeb stated that Third Point planned to vote against the merger, though the firm only cut its holding in United Technologies by Aside from the merger, the Carrier and Otis spinoffs, which are pure plays in their respective industries, also provide interesting opportunities.

For each share of United Technologies stock, shareholders will receive one share of Carrier and half a share of Otis. Carrier and Otis have little to do with United Technologies' main aerospace concentration, so it is likely that the company underinvested in these side businesses given their potential. After spinning off, the new companies will be able to focus on their niche specialties of HVAC and elevators, respectively. Unlike the newly combined Raytheon Technologies, which operates in highly cyclical sectors, Carrier and Otis represent more stable areas of the market.

Though installation of new HVAC and elevator units will likely fall as construction slows down, these products must also be maintained, serviced and replaced if broken. Some businesses are better off as a pure play, and this is likely to be the case with Otis. The strong intangible value of its brand, which has a year history, is the number one name in elevator safety brakes, which will help drive its growth as an independent company.

With an economic downturn in progress in the U. Raytheon and United Technologies, which merged on April 3, are no exception, especially as their operations are mainly in the aerospace and defense sectors, which follow the strength of the economy and largely depend on government spending.

However, the all-stock merger of equals was able to proceed, as were the spinoffs of Otis and Carrier into pure plays in their respective industries, allowing all three resulting companies to focus on their areas of expertise.

Businesses all too often see their growth suffer because of unnecessary diversification, or "diworseification," as Peter Lynch calls it. The merger and spinoffs are the opposite of diworseification and show high potential to unlock value fore shareholders.

Disclosure: Author owns no shares in any of the stocks mentioned. Adam is proud to sit on the jury of the Crystal Cabin Awards and to have laid on the bed in Etihad's Residence.

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