United Technologies in bid to acquire Rockwell Collins: source

United Technologies Corporation (UTC) has submitted an offer to acquire aircraft component manufacturer Rockwell Collins Inc, a person familiar with the matter said on Friday.

By acquiring Rockwell Collins, which has a market capitalization of $19.3 billion, United Technologies would bulk up its aerospace group, giving it the option of separating it from the company’s other industrial units.

Rockwell Collins has been working with an investment bank to review United Technologies’ offer, and there is no certainty that it will decide to engage in any further negotiations with United Technologies, the source said.

The source asked not to be identified because the matter is confidential. Rockwell Collins and United Technologies declined to comment.

Bloomberg News reported earlier on Friday that United Technologies was “weighing” a potential acquisition of Rockwell Collins, but said it was unclear whether the two companies were currently in talks.

A combination of the two large aerospace suppliers would meld Rockwell’s commercial and military aircraft avionics business with United Technologies’ broad portfolio that includes aircraft engines, structures, cockpit and cabin controls, ventilation systems and other electronic and mechanical devices used in aviation.

Source: Reuters

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