"Under Secretary Ellen Lord is engaging with industry leadership to understand the implications and governance as a result of this acquisition", Lieutenant Colonel Mike Andrews, a department spokesman, said, referring to the Pentagon's acquisition chief in a statement Monday.
As the USA military looks to buy more cutting-edge technology, bulked-up research and development capabilities could give defense companies a leg up as they compete for lucrative Pentagon contracts.
But the proposed merger is not expected to affect plans by United Technologies to streamline by spinning off its Otis elevator and Carrier building-systems business into separate companies, expected to happen next year. "Raytheon Technologies will continue alegacy of innovation withan expanded aerospace and defense portfoliosupported by the world's most dedicated workforce", said Tom Kennedy, Chairman and CEO of Raytheon.
President Donald Trump quickly questioned the impact on competition in the defense industry.
Approved unanimously by the boards of both companies, United Technologies shareholders will own about 57% of the new company, with Raytheon shareholders owning the remaining ~43%. When the dust settles, shareholders of United Technologies will own around 57pc of the new firm while Raytheon's will own around 43pc.
"We are looking forward to talking to the president later today", Hayes said.
"There is nothing anti-competitive about this deal", Hayes added. In addition, Raytheon makes various ship-based missiles and torpedoes, and the Phalanx close-in air defense gun system, and it has a growing business in cyber protection.
The UTX-RTN merger will create the world's second-largest aerospace and defense company after Boeing in terms of annual revenues.
Meanwhile United Technologies two main businesses are engine maker Pratt & Whitney and Collins Aerospace, which manufactures equipment for commercial, regional and military aircraft such as seats, landing gears and sensors. "I just want to see competition".
Apart from developing new and critical technologies, the companies want to make advancements in developing hypersonics and future missile systems and directed energy weapons.
Currently, United Technologies and Raytheon have a shared market value of around $166 billion.
Further, the two companies had a highly complimentary technology and research and development platform.
The deal brings together two companies that have been intertwined with America's technological explosion of the past almost 100 years. At the time, United Technologies was already the biggest aircraft parts manufacturer, while Rockwell Collins was the fourth.
On a conference call Monday morning, Hayes promised "Raytheon Technologies will have a strong presence in CT for years to come".
The deal faces detailed scrutiny from United States competition regulators.
A Credit Suisse note also alluded to "limited product overlap" but said the economic benefits of the deal "seem modest" and that the promised $1 billion in annual cost savings appear "somewhat questionable".