Safran Nears Agreement to Purchase Raytheon's Flight Control Business in $1.8B Deal: Reuters

Safran SA SAFRY is reportedly in negotiations with Raytheon Technologies Corp RTX for its flight control unit at the beginning of June.

Safran is nearing an ~$1.8 billion deal to acquire Raytheon’s unit that makes flight controls for aircraft, helicopters, and missiles, Reuters reported citing a knowledgeable source.

Raytheon will be relieved of a low-margin business inherited from its $120 billion merger with United Technologies three years ago, while Safran will strengthen its position in flight controls versus rivals, added the report.

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Safran could conclude an agreement to acquire Raytheon’s actuation unit, which manufactures flight controls, as early as this week, the source stated.

The Raytheon business will improve Safran’s relations with Airbus SE EADSY, as it sells into many of its commercial aircraft and has some operations in France.

Price Action: RTX shares are trading lower by 0.88% at $99.80 on the last check Wednesday.