It was recently reported that United Technologies consented to buy Rockwell Collins for a sum of nearly 23 billion dollars. This acquisition can give rise to a behemoth of aerospace, which can outperform warplanes and jetliners from the beginning to end.
This deal is certainly the largest in the entire aviation history and also puts the aircraft parts giant in a better position. The company is now in a position to withstand competition from rivals like Airbus SE and Boeing Co. in terms of higher output and discount in prices. The company is now under the possession of a broad suite of airplane products like displays of touch screen cockpit of Rockwell Collins and Whitney and Pratt jet engines of United Technologies.
The CEO of United Technologies, Greg Hayes addressed the analysts during a conference call on Tuesday, and said that this merger is going to provide them with the perfect combination of innovation and scalability. He also said that this deal will be good for the customers as well as the industry as it is going to increase the levels of scalability.
The company released a statement, which revealed that the shareholders of Rockwell Collins are going to receive 140 dollars in both cash and stock. The shares of United Technologies took a dip and fell to 113.67 dollars and shares of Rockwell Collins rose to 131.58 dollars.
United Technologies now plans to open a new unit that will combine the business of two companies. This new unit is going to be called Collins Aerospace Systems and will be headed by the CEO of Rockwell Collins, Kelly Ortberg. David Gitlin, who currently controls UTC Aerospace Systems, will be appointed as the President and Chief Operating Officer.