Sign up USA
Proactive Investors - Run By Investors For Investors

United Technologies and Honeywell merger on hold

One of the largest engineering mergers ever seen has been put on hold after United Technologies rejected a merger with rival Honeywell (NYSE:HON) on competition concerns.
United Technologies and Honeywell merger on hold
Reports today said the companies also could not agree over who would run the company..

One of the largest engineering mergers ever seen has been put on hold after United Technologies (NYSE:UTX) rejected a deal with rival Honeywell (NYSE:HON) on competition concerns.

Honeywell made an approach to its rival conglomerate worth US$108 per share last week, a 17% premium to the current share price of US$92.42.

Cost savings were estimated to be US$3.5bn but United Technologies said any deal would face “would face insurmountable regulatory obstacles and strong customer opposition.”

Reports today said the companies also did not agree over who would run the company.

The latest proposal was said to have been structured as takeover rather than a merger with Honeywell bosses in charge.

Talks between the pair have been underway for months after United originally kick-started the discussions last year.

United said it had also rejected a previous proposal from Honeywell in September, again over fears it would be rejected by regulators.

The two are both massive entities, each worth around US$80bn and making everything from electronics controls and aero engines to lifts and plane parts.

A combined company would be worth more than US$160bn just adding the current market caps together.

Analysts said Boeing and Airbus would also not stand for having just one supplier making most of their aeroplanes.

PhilW.jpg


Register here to be notified of future HON Company articles
View full HON profile

Honeywell Timeline

Related Articles

Interviewees
March 01 2017
It saw more than two thirds of its 2016 net fee income generated from outside the UK, with Asia Pacific and UK both at 32%, Continental Europe at 28% and Americas at 8%.
Aeroplane coming in to land
December 22 2016
This will take the number of routes operating from the airport to 28 from Spring 2017.
Electronic security equipment
January 31 2017
With Newmark Security, it is wise to take a long-term view
Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC