According to the newspaper the two companies - which together have a market value of roughly $166 billion - could announce an all-stock deal in the next few days.
"The combined company, which will be named Raytheon Technologies Corporation, will offer expanded technology and R&D capabilities to deliver innovative and cost-effective solutions aligned with customer priorities and the national defense strategies of the USA and its allies and friends", a joint statement from the two companies read.
In a phone interview Sunday evening, executives from both companies said the deal was driven by a desire to create a leading aerospace technology company using state-of-the-art hardware from the defense and commercial aviation industries.
United Technologies shareholders will own about 57 per cent of the combined business, called Raytheon Technologies Corporation, which will be led by Hayes. Each advanced more than 20% this year through June 7, in line with a Standard & Poor's index of aerospace and defense manufacturers.
"The company should be expected to make a strong play for the Defense Department's emerging hypersonic missiles programs", the Post reported. "Raytheon Technologies will continue a legacy of innovation with an expanded aerospace and defense portfolio supported by the world's most dedicated workforce", said Tom Kennedy, Raytheon Chairman and CEO. Hayes will ascend to both roles three years after the deal closes. "I can't remember the last time we competed with United Technologies".
United Technologies isn't paying a premium for Raytheon, taking into account the separation of the Otis and Carrier businesses, according to a person familiar with the matter, who asked not to be identified because the information is private. A conference call is scheduled for Monday morning.
Pratt & Whitney, which operates as a subsidiary of United Technologies, builds the engines that power Airbus' A220, and A320neo and A380 commercial jets. Another crucial customer is the U.S. Department of Defense. Trump told CNBC that he was a "little concerned" about the deal and that while he would like to see it go through he added: "I want to see that we don't hurt our competition".
The Raytheon-UTC deal will need USA antitrust approval and a green light from the Pentagon.
The companies will have combined debt of about $26 billion when the deal closes, with about $24 billion of that coming from United Technologies, the companies said in their statement. There is no change to the 2019 financial outlook for either company.
An agreement could also allow for increased scale and shared technology, as well as helping the enlarged company weather any slowdown in the commercial aerospace and defense industry as United States companies face mounting challenges due to the trade war launched by USA president Donald Trump against China.
The headquarters will be in the Boston area; now United Technologies is based on Farmington, Connecticut, while Raytheon's headquarters is in Waltham, Massachusetts.