United Technologies' (UTX) $23 billion takeover of avionics maker Rockwell Collins (COL) looks set to win EU approval.
XThe largest deal in aerospace history will clear the key regulatory hurdle, sources reportedly close to the matter told Reuters.
It will give Pratt & Whitney parent United Technologies more leverage to resist pressure from the likes of Boeing (BA), Airbus (EADSY) and Bombardier (BDRBF) when they seek price cuts.
United Tech expects to close the deal this year, pending regulatory approvals from around the world.
United Technologies shares fell 0.4% on the stock market today. Rockwell Collins lost 0.4%.
Last year, Boeing voiced its skepticism about United Tech's $23 billion Rockwell Collins deal.
Boeing Backs Move
But Boeing now supports the merger as United Tech and Rockwell have signed up for Boeing's Partnering for Success 2.0 supplier cost-cutting initiative. Both Boeing and United Technologies are Dow Jones components.
S&P 500 component Rockwell Collins' history goes away back to 1933, when Arthur Collins founded the Collins Radio Company in Cedar Rapids, Iowa.
The company was bought by Rockwell International in 1973 after it fell into financial difficulties. The manufacturing conglomerate spun off its avionics division in 2011, creating the current Rockwell Collins.
Aerospace giant Boeing has previously voiced concerns about consolidation in the industry. In 2016, the U.S. plane maker and European rival Airbus expressed unease about a Honeywell (HON) plan to buy United Technologies.
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The post United Technologies' $23 Billion Rockwell Collins Takeover Set To Win EU Approval appeared first on Investor's Business Daily.
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