On Tuesday, The Wall Street Journal reported that United Technologies Corp. (NYSE:UTX) is nearing a deal to scoop up Rockwell Collins Inc. (NYSE:COL) for over $20 billion.
If completed, the deal would create one of the world’s largest aircraft-equipment manufacturers.
The Journal reported that United and Rockwell are considering an acquisition deal worth no more than $140 per share, representing a 9.4% premium over COL’s Monday closing price of $127.99 per share and placing a $20.8 billion market value on Rockwell.
Shares of United Tech, which is known for selling jet engines, landing gear, and wheels, are gaining about 2% in afternoon trading, while Rockwell stock is up about 1.7%. Rockwell is a leading supplier of aviation electronics like cockpit displays and communications systems.
Bloomberg reported on a possible deal earlier this month, pointing out that a deal would allow aircraft manufacturers “greater heft” as companies like Boeing (NYSE:BA) and Airbus “squeeze suppliers for price reductions amid a planned production increase of narrow-body jetliners.”
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Boeing Company (The) (BA): Free Stock Analysis Report
Rockwell Collins, Inc. (COL): Free Stock Analysis Report
United Technologies Corporation (UTX): Free Stock Analysis Report
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