"I want to see that we don't hurt our competition", he said in an interview with CNBC.
Raytheon, a massive US defense contractor best known for manufacturing the Patriot missile defense system, has agreed to merge with industrial technology giant United Technologies in an all-stock deal, the two companies announced Sunday.
UTC shareholders will own 57% of the shares and UTC will appoint eight of the 15 new directors.
The combined company would be the second-largest US aerospace company, behind Boeing. On that list, Boeing had more than $101 billion in revenue while another rival, Lockheed Martin, racked up $53.7 billion, according to Forbes.
The new company is the result of an all-stock merger between the Raytheon Company and United Technologies. The companies forecast returning $18 billion to $20 billion to shareholders within three years following merger completion.
The combined company will be named Raytheon Technologies Corp.
The deal is expected to close in the first half of 2020.
In the commercial aviation space, the combined company will focus on developing next-generation connected airspace, cyber protection for connected aircraft, and advanced analytics and artificial intelligence. Raytheon is based in the Boston suburb of Waltham, while UTC is based in Farmington, Conn.
Further, the two companies project annual cost-saving of $1 billion beginning in the fourth year after the close of the transaction. United's list of accomplishments range from transmitting the first photo via satellite to receiving the first Global Positioning System signal.
When United Technologies rebuffed an acquisition offer from Honeywell International in 2016, United Technologies chief executive Greg Hayes justified the decision partly by predicting that Boeing and Airbus would never accept having a supplier that would "build the plane from tip to tail". It's estimated that the merger will generate robust free cash flow and strengthen the balance sheet, thereby helping the new company to enhance shareholder wealth and increase investments. Raytheon makes everything from missiles and missile defense systems to radars and cybersecurity solutions.
United Technologies includes Pratt & Whitney and Collins Aerospace.
Echoing concerns that top Pentagon procurement officials have raised for years, the president said he is anxious that the deal would harm the military supply chain by giving government buyers fewer competitive options to turn to for individual weapons systems. "Merging our portfolios will also deliver cost and revenue synergies that will create long-term value for our customers and shareowners".
But the proposed merger is not expected to affect plans by United Technologies to streamline by spinning off its Otis elevator and Carrier building-systems business into separate companies, expected to happen next year.