Honeywell, United Technologies talk merger - sources

Monday, 22. February 2016 19:41

Two aerospace giants, Honeywell International Inc. and the United Technologies Corporation have held talks on possible merger, according to sources of the U.S. media.

If agreed, the merger would create a mega-corporation worth over $94 billion.

Shares of Honeywell traded 1.39% higher at $108.79, and the United Technologies jumped 4.78% to $92.45 at 7:24 p.m. CET (1:24 p.m. EST).

Honeywell allegedly offered a premium, mostly in stock and also some cash, to essentially buy smaller United Technologies, but there were some concerns whether the deal would pass obligatory anti-trust review both in the United States and in the European Union. The two companies provide a significant number of parts for two other giants - the Boeing Company and Airbus Group SE. The United Technologies' Pratt & Whitney makes aircraft engines, while both corporations provide avionics for the airplane makers.

Current market capitalisation for the companies: Honeywell $82.53 billion; United Technologies $73.80 billion, according to available market data.

Similar talks have been held almost a year ago, when then-larger-market-cap United Technologies visited Honeywell in New Jersey, and another round in October initiated by Honeywell visiting the conglomerate in Connecticut. Meanwhile, the tables have turned, and Honeywell emerged as a larger in the market.

None of the two corporations offered either official confirmation nor denied the talks on their official websites.

 

Image: United Technologies

Related Links: Airbus SEHoneywell International Inc.United Technologies CorporationBoeing Company
Author:
Breaking the News / ZR