Chief Executive Charles Woodburn said BAE was benefiting from a requirement for some assets to be divested in order for the merger to win regulatory clearance.
Last June, UTC agreed to combine its aerospace business with U.S. contractor Raytheon to create a company worth about $121 billion. “These are businesses that are getting shaken out that are high quality and wouldn’t naturally be disposed of except for an unusual situation.” BAE said it had agreed to buy Collins Aerospace’s Military Global Positioning System for $1.925 billion in cash. It is buying Raytheon’s Airborne Tactical Radios business for $275 million, also in cash.
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