Raytheon Hopes to Shed Aircraft Unit; Goldman, ONEX Hope to Buy

Defense company Raytheon may sell a large minority stake in its aircraft unit to Toronto-based ONEX Corp. and Goldman Sachs by year's end, Bloomberg quotes a person with knowledge of the deal as saying. While Raytheon management would maintain a majority stake in its aircraft unit, the deal would allow the company to focus more heavily on its defense business. Because the deal involves Canadian ONEX, it requires Defense, State and Treasury Department approval before it can go through. With corporate jet makers set to deliver a record 1,000 units next year, Raytheon's aircraft unit has not kept up, seeing its global market share decrease from 20 to 16 percent. Shares of Raytheon are up 30% this year.
• Sources: Bloomberg, AP
• Related commentary: Raytheon, Northrop Grumman Report Strong Earnings, A Gold Star for Raytheon
• Potentially impacted stocks and ETFs: Raytheon (RTN), Goldman Sachs (GS). Competitors: Honeywell International (HON), Boeing (BA), Northrop Grumman (NOC), Lockheed Martin Corporation (LMT). ETFs: iShares Dow Jones US Aerospace & Defense (ITA), PowerShares Aerospace & Defense (PPA).

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