NEW YORK: Teneo is supporting long-standing client United Technologies in its planned acquisition of Raytheon, according to a Raytheon spokesperson.
If completed, the deal would create a giant in aerospace and defense with $74 billion in sales, second only to Boeing in the industry, according to CNBC.
Teneo has sold a majority stake to CVC Partners in a deal announced on Friday that valued Teneo at $700 million. Former majority owner BC Partners exited after four-and-a-half years as a result.
A Teneo spokesperson declined to comment.
President Donald Trump sounded off on the Raytheon-United Technologies deal in an interview with CNBC on Monday, saying he is worried it would be anti-competitive and hurt the government’s ability to negotiate contracts. Trump’s comments came as he plans to boost military spending, which could create a windfall for companies such as Raytheon, which makes missiles, radar systems and command-and-control technology, according to The New York Times.
The defense and aerospace industry has seen a spate of deals in recent years, including acquisitions by Northrop Grumman and United Technologies. A handful of companies including Boeing, Raytheon and Lockheed Martin control the market, arguing that they need to be larger to achieve scale and use cost savings for research and development, according to The Times.