According to the media report, Raytheon is nearing an all-stock deal to merge with United Technologies's aerospace unit that would combine the aviation and defence sectors, bringing the two defence suppliers under one enterprise.
For Raytheon, the agreement reportedly provides exposure to the commercial aerospace sector through the United Technologies' unit, which produces everything from high-value jet engines competing with GE, to cockpit controls, airplane seats and cabin interiors.
The deal, which could still fall apart, was reported earlier by The Wall Street Journal. The new company is reportedly planning headquarters in the Boston metropolitan area.
Earlier in June, United Technologies business unit won more than $3.2 billion to provide 233 additional propulsion systems for F-35 Joint Strike Fighters, according to the Department of Defence.
Meanwhile, Raytheon said in April that its engineers are developing a technology to identify and counter evasive bacterial threats as part of a new Pentagon program.