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Honeywell seeks to buy United Technologies


New York / AFP

US corporate major Honeywell has held talks to acquire United Technologies in a deal that would merge the two US industrial heavyweights with major aerospace operations, CNBC
reported.
Honeywell initiated the talks within the last two weeks, offering United Technologies a premium in stock and cash, the report said, adding that a deal could fall through in the forthcoming days.
An acquisition would combine two companies with about whopping $95 billion in annual sales.
United Technologies shares jumped 6.0 percent to $93.53 in midday trade. However,
Honeywell shares fell 1.2 percent to $106.05.
Despite repeated attempts, both Honeywell and United Technologies declined comment.
Among the possible stumbling blocks are concerns on United Technologies’ part that a transaction would not clear antitrust review, given that both companies are major suppliers to Boeing and Airbus, the report has pointed out.
The two sides have held intermittent merger talks over the last year or so, with United Technologies initially trying to control a combined company and then Honeywell turning the tables after United Technologies’ market capitalization fell, CNBC said.
Besides aerospace, Honeywell has businesses in automation and controls and advanced materials. United Technologies’ businesses include Pratt & Whitney aircraft engines, Otis elevators and heating and climate control products.
Honeywell International, Inc. is an American multinational conglomerate company that produces a variety of commercial and consumer products, engineering services and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments. The company operates three business units, known as a Strategic Business Unit–Aerospace, Automation Controls and Solutions (ACS), and Performance Materials and Technologies.
It also provides a broad range of high-technology products and support services to customers in the aerospace and building industries worldwide.

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