Honeywell no longer interested in combination with United Technologies

Tuesday, 01. March 2016 15:27

Honeywell announced on Tuesday it was no longer interested in pursuing combination with United Technologies (UTX) due to “their unwillingness to engage in negotiations.” Honeywell believed the combination would have created significant value for both sets of shareholders.

Dave Cote, Honeywell Chairman and CEO, said, "Considerable value would have been added through the $3.5 billion of very achievable cost synergies (6% of UTX sales, 4% of total sales) and application of Honeywell management practices, especially our extensive software capability and cost management that would support needed product reinvestment. It also would have created the opportunity to construct an excellent core growth portfolio. However, continuing to try to negotiate with an unwilling partner is inconsistent with our disciplined acquisition process.”     

Honeywell said it disagreed with UTX’s definition of the regulatory and customer risks linked with the transaction as it believed the regulatory process would not have posed a “material obstacle” to the deal.

Honeywell closed 1.63% down at $101.35 and United Technologies finished 1.10% lower at $96.62 on Monday.

Image: Beta/AP

Related Links: Honeywell International Inc.United Technologies Corporation
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