The month-long suspense that’s been building over about a possible United Technologies/Rockwell Collins deal finally ended Tuesday morning with an announcement Bloomberg called “one of the biggest in aviation history.” United Technologies chairman and CEO Greg Hayes confirmed his company will purchase Rockwell Collins for $30 billion.
United Technologies to Buy Rockwell Collins
Key Takeaways:
- United Technologies (UTC) announced it will acquire Rockwell Collins for $30 billion (including assumed debt) to create a new entity called Collins Aerospace Systems.
- Rockwell Collins shareholders will receive $140 per share in cash and UTC stock, with the deal expected to close by the third quarter of 2018.
- The acquisition aims to enhance customer value and make aircraft more intelligent and connected within the rapidly evolving aerospace industry.
- Boeing expressed strong skepticism about the deal, fearing it could harm their customers and industry by granting the combined entity excessive negotiating leverage, and indicated they might challenge it.
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