UTC To Buy Rockwell-Collins

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United Technologies (UTC) announced a deal to buy Rockwell-Collins over the weekend, growing United Technologies' already huge aerospace portfolio. UTC already owns, among others, Pratt & Whitney, the jet engine manufacturer. The $23 billion purchase price for Rockwell-Collins will be among the biggest aerospace acquisitions ever. Executives for the companies announced that they expect the merger will create hundreds of millions of dollars in cost savings, likely from headcount reductions and combining of facilities.

News of the acquisition was not met warmly. UTC’s stock was down 5% on Tuesday following the announcement. Boeing and Airbus, wary of a concentration of negotiating power among their suppliers, both released statements opposing the merger. Boeing said of the proposal, “Until we receive more details, we are skeptical that it would be in the best interest of—or add value to—our customers and industry. Should we determine that this deal is inconsistent with those interests, we would intend to exercise our contractual rights and pursue the appropriate regulatory options to protect our interests.”

Comments (4)

A fascinating comment, coming from a company that recently announced that it intends to in-source its avionics needs.

Posted by: Tom Yarsley | September 5, 2017 1:19 PM    Report this comment

Could it be that Boeing may have seen the handwriting on the wall? Perhaps they are getting nervous having too many eggs in the UTC basket.

Posted by: Leo LeBoeuf | September 5, 2017 1:56 PM    Report this comment

Rockwell Collins is run by bean counters, not engineers as it was when Art Collins ran Collins Radio. Their goal is money and never-ending acquisitions of other companies rather than making the best avionics they can. Boeing and Airbus ought to get Garmin to make their avionics.

Posted by: Daniel Morgan | September 6, 2017 9:06 AM    Report this comment

Rockwell Collins is run by bean counters, not engineers as it was when Art Collins ran Collins Radio. Their goal is money and never-ending acquisitions of other companies rather than making the best avionics they can. Boeing and Airbus ought to get Garmin to make their avionics.

Posted by: Daniel Morgan | September 6, 2017 9:15 AM    Report this comment

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