United Technologies has confirmed it's acquiring Rockwell Collins in what is one of the largest mergers in the aerospace industry. The combined entity will have more negotiating power vis-à-vis Boeing and Airbus.
US-based industrial conglomerate United Technologies (UTC) announced it had reached an agreement to buy aerospace supplier Rockwell Collins for $30 billion (25 billion euros), including debt.
UTS, which make Otis elevators and Pratt & Whitney engines, said the merger "adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems," CEO Greg Hayes said in a statement.
"Together, Rockwell Collins and UTC will enhance customer value in a rapidly evolving aerospace industry by making aircraft more intelligent and more connected."
Iowa-based Rockwell Collins makes flight deck avionics, cabin electronics and interiors for commercial and military customers.
The companies expect the deal to close by the third quarter of 2018, subject to approval from Rockwell Collins's shareholders and regulators.
UTC reckons the merger will generate an estimated $500 million or more in pre-tax cost synergies in four years' time.
The takeover will create an aerospace giant capable of equipping both passenger jet engines and fighter planes. It'll be better positioned to resist price pressures from the likes of Boeing and Airbus.
hg/jd (AFP, dpa)