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== Consolidation == Several consolidations took place in the aerospace and defense industries over the last few decades. [[Airbus]] prominently illustrated the European airliner manufacturing consolidation in the late 1960s.<ref name=AvWeek12jul2018/> Between 1988 and 2010, more than 5,452 [[mergers and acquisitions]] with a total known-value of US$579 billion were announced worldwide.<ref>{{cite web |url= https://imaa-institute.org/m-and-a-by-industries/#mergers-acquisitions-industry-Aerospace-Defense |title= Mergers & Acquisitions - Aerospace & Defense |work= Thomson Financial, Institute for Mergers, Acquisitions and Alliances}}</ref> In 1993, then [[United States Secretary of Defense]] [[Les Aspin]] and his deputy [[William J. Perry]] held the "Last Supper" at [[the Pentagon]] with contractors executives who were told that there were twice as many military suppliers as he wanted to see: $55 billion in military–industry mergers took place from 1992 to 1997, leaving mainly [[Boeing]], [[Lockheed Martin]], [[Northrop Grumman]] and [[Raytheon]].<ref>{{cite news |url= https://www.nytimes.com/1998/02/27/business/shrinking-military-complex-after-cold-war-pentagon-just-another-customer.html |title= The Shrinking Military Complex; After the Cold War, the Pentagon Is Just Another Customer |author= Leslie Wayne |newspaper= New York Times |date= Feb 27, 1998}}</ref> [[Boeing]] bought [[McDonnell Douglas]] for US$13.3 billion in 1996.<ref>{{cite news |url= https://www.nytimes.com/1996/12/16/business/boeing-offering-13-billion-to-buy-mcdonnell-douglas-last-us-commercial-rival.html |title=Boeing offering $13 billion to buy McDonnell Douglas |work= New York Times |date= Dec 16, 1996 }}</ref> [[Raytheon]] acquired [[Hughes Aircraft Company]] for $9.5 billion in 1997.<ref>{{cite news |url= https://www.flightglobal.com/news/articles/raytheon-wins-bidding-war-for-hughes-aircraft-1467/ |title= Raytheon wins bidding war for Hughes Aircraft |date= 22 January 1997 |work= Flight International}}</ref> [[BAE Systems]] is the successor company to numerous British aircraft manufacturers which merged throughout the second half of the 20th century. Many of these mergers followed the [[1957 Defence White Paper]].{{Citation needed|reason=Specific claim requires source|date=February 2021}} [[Marconi Electronic Systems]], a subsidiary of the [[General Electric Company plc]], was acquired by [[British Aerospace]] for US$12.3 billion in 1999 merger,<ref>{{cite news |url= https://www.flightglobal.com/news/articles/all-uk-merger-sends-european-defence-into-disarray-47309/ |title= All-UK merger sends European defence into disarray |date= 27 January 1999 |work= Flight International}}</ref> to form [[BAE Systems]]. In 2002, when [[Fairchild Dornier]] was [[bankrupt]], Airbus, Boeing or Bombardier declined to take the [[728JET]]/928JET large [[regional jet]] program as [[Mainline (aeronautics)|mainline]] and regional aircraft manufacturers were split and Airbus was digesting its ill-fated [[Fokker]] acquisition a decade earlier.<ref name=AvWeek12jul2018/> On September 4, 2017, [[United Technologies]] acquired [[Rockwell Collins]] in cash and stock for $23 billion, $30 billion including Rockwell Collins' net debt, for $500+ million of synergies expected by year four.<ref>{{cite press release |url= http://www.utc.com/News/News-Center/Pages/United-Technologies-To-Acquire-Rockwell-Collins-For-30-Billion.aspx |title= United Technologies To Acquire Rockwell Collins For $30 Billion |date= September 4, 2017 |publisher= United Technologies }}</ref> {| class="wikitable sortable" |+ Major aerospace and defence deals 2012-2018 |- ! Target !! Buyer !! data-sort-type="usLongDate" | Closed !! U.S. Bn || scope="col" class="unsortable" | Ref |- | [[Precision Castparts]] || [[Berkshire Hathaway]] || style="text-align: right;" | January 2016 || style="text-align: right;" | 37.2 || |- | [[Rockwell Collins]] || [[United Technologies]] || style="text-align: right;" | November 2018 || style="text-align: right;" | 30.0 || |- | [[Goodrich Corporation|Goodrich]] || [[United Technologies]] || style="text-align: right;" | July 2012 || style="text-align: right;" | 18.3 || |- | [[Orbital ATK]] || [[Northrop Grumman]] || style="text-align: right;" | June 2018 || style="text-align: right;" | 9.2 || <ref>{{cite news |url= http://aviationweek.com/world-satellite-business-week/northrop-buy-orbital-more-9b |title= Northrop To Buy Orbital For More Than $9B |date= Sep 18, 2017 |author= Michael Bruno|work= Aviation Week & Space Technology}}</ref> |- | [[Sikorsky Aircraft|Sikorsky]] || [[Lockheed Martin]] || style="text-align: right;" | November 2015 || style="text-align: right;" | 9.0 || |- | [[B/E Aerospace]] || Rockwell Collins || style="text-align: right;" | April 2017 || style="text-align: right;" | 8.6 || |- | [[Alliant Techsystems]]' A&D Group || Orbital ATK || style="text-align: right;" | February 2015 || style="text-align: right;" | 5.0 || |- | [[Exelis Inc.]] || [[Harris Corp.]] || style="text-align: right;" | May 2015 || style="text-align: right;" | 4.75 || |- | [[Avio S.p.A.]] Aviation Business || [[General Electric]] || style="text-align: right;" | August 2013 || style="text-align: right;" | 4.3 || |- | [[Titanium Metals Corp]] || Precision Castparts || style="text-align: right;" | December 2012 || style="text-align: right;" | 3.0 || |- | Firth Rixson || [[Alcoa]] || style="text-align: right;" | July 2015 || style="text-align: right;" | 2.85 || |} The Oct. 16, 2017 announcement of the [[CSeries]] partnership between [[Airbus]] and [[Bombardier Aerospace]] could trigger a daisy chain of reactions towards a new order.<!--<ref name=AvWeek18oct2017/>--> Airbus gets a new, efficient model at the lower end of the [[narrowbody]] market which provides the bulk of [[airliner]] profits and can abandon the slow selling [[Airbus A319|A319]] while Bombardier benefits from the growth in this expanded market even if it holds a smaller residual stake.<!--<ref name=AvWeek18oct2017/>--> Boeing could forge a similar alliance with either [[Embraer]] with its [[E-jet E2]] or [[Mitsubishi Heavy Industries]] and its [[Mitsubishi Regional Jet|MRJ]].<ref name=AvWeek18oct2017>{{cite news |url= http://aviationweek.com/commercial-aviation/opinion-c-series-deal-ends-aerospace-status-quo |title= Opinion: C Series Deal Ends Aerospace Status Quo |date= Oct 18, 2017 |author= Jerrold T. Lundquist |work= Aviation Week & Space Technology}}</ref> On 21 December, Boeing and Embraer confirmed to be discussing a potential combination with a transaction subject to Brazilian government regulators, the companies' boards and shareholders approvals.<ref>{{cite news |url= http://aviationweek.com/business-aviation/boeing-embraer-mull-combination-could-reset-oem-industry |title= Boeing, Embraer Mull Combination That Could Reset OEM Industry |date= Dec 21, 2017 |author= Michael Bruno and Guy Norris |work= Aviation Week Network}}</ref> The weight of [[Airbus and Boeing]] could help E2 and CSeries sales but the 100-150 seats market seems slow.<ref>{{cite news |url= https://www.flightglobal.com/news/articles/analysis-mergers-may-fuel-long-awaited-e2-and-cseri-449225/ |title= Mergers may fuel long-awaited E2 and CSeries sales bump |date= 6 June 2018 |author= Jon Hemmerdinger |work= Flightglobal}}</ref> As the CSeries, renamed A220, and E-jet E2 are more capable than their predecessors, they moved closer to the lower end of the [[narrowbody|narrowbodies]].<!--<ref name=AvWeek12jul2018>--> In 2018, the four Western airframers combined into two within nine months as Boeing acquired 80% of Embraer's airliners for $3.8 billion on July 5.<ref name=AvWeek12jul2018>{{cite news |url= http://aviationweek.com/commercial-aviation/aerospace-consolidation-anew-now-it-s-commercial-airframers |title= Aerospace Consolidation Anew: Now It's The Commercial Airframers |date= Jul 12, 2018 |author= Jens Flottau |work= Aviation Week & Space Technology}}</ref> On April 3, 2020, [[Raytheon]] and [[United Technologies Corporation]] (except [[Otis Worldwide]], leaving [[Rockwell Collins]] and engine maker [[Pratt and Whitney]]) merged to form [[Raytheon Technologies Corporation]], with combined sales of $79 billion in 2019.<ref>{{cite news |url= https://www.flightglobal.com/systems-and-interiors/united-technologies-raytheon-merger-to-close-today/137735.article |title= United Technologies-Raytheon merger to close today |author= Jon Hemmerdinger |date= 3 April 2020|work= Flightglobal}}</ref> The most prominent unions between 1995 and 2020 include those of Boeing and McDonnell Douglas; the French, German and Spanish parts of EADS; and United Technologies with Rockwell Collins then Raytheon, but many mergers projects did not went through: Textron-Bombardier, EADS-BAE Systems, Hawker Beechcraft-Superior Aviation, GE-Honeywell, BAE Systems-Boeing (or Lockheed Martin), Dassault-Aerospatiale, Safran-Thales, BAE Systems-Rolls-Royce or Lockheed Martin–Northrop Grumman.<ref>{{cite news |url= https://www.flightglobal.com/airframers/failed-marriages-top-10-aerospace-mergers-that-never-were/137840.article |title= Failed marriages: Top 10 aerospace mergers that never were |author= Murdo Morrison |date= 9 April 2020 |work= Flightglobal}}</ref>
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