Donald Trump has informed he is a “little concerned” that a merger between two of the US’s major protection giants could reduce competition.
United Technologies Corp (UTC) and Raytheon offer a contract uniting the makers of missiles, electronic warfare systems, and engines for Airbus and the F-35 fighter jet.
A soon as the companies confirmed the plan the US president voiced caution.
The US invests hundreds of billions of dollars each year with protection firms.
Experts said that a union of UTC, whose separations include the aero-engine maker Pratt and Whitney, and Raytheon, maker of the Tomahawk and the Patriot missile systems, would be likely to re-shape the defense sector as other firms look to combine.
But Mr. Trump said the merger could damage opposition and make it harder for the US government to negotiate defense contracts.
“I want to see that we don’t upset our opposition,” he said in an interview with US broadcaster CNBC.
Mr. Trump admired both firms and said he hoped a deal can be done, but advised: “I don’t want to see where we have one less person that can compete for an order. I don’t want to see that. It’s no good.”
UTC chief executive Greg Hayes, when asked about the comments, said he would talk to the president later on Monday.
Although the two firms have some clienteles in common, they debate that their business overlap is limited. The contract faces detailed inspection from US competition regulators that will take months.
JP Morgan analyst Seth Seifman said news of the union was “a surprise, but we see real rationales on both sides in scale, variation in the face of cyclical uncertainty, and financial profits”.