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United Technologies is set to buy Rockwell Collins for a massive $23 billion. This will be one of the biggest transactions in aviation history. The companies will create an aerospace division that will cater to jetliners and warplanes. The price of $140 a share has risen to almost 18% after the announcement making the whole deal worth $30 billion. Rockwell Collins shareholders will get $140 a share in both cash and stock according to a statement released by United Technologies on Monday.

The new deal will make United Technologies one of the biggest aircraft-parts suppliers in the world. This is also seen as a relief from the bottleneck created by Boeing Co. and Airbus SE. The resulting company will now provide a wide range of aircraft components. Rockwell Collin’s touchscreen displays will be teaming up with jet engines manufactured by the Pratt & Whitney division of United Technologies. Rockwell is the primary supplier of avionic systems for 787and with UTC acquisition, now UTC puts a significant pressure on other suppliers.

The deal is seen as a consolidation of the market by many. However, experts say that since the aerospace market is already fragmented, the deal isn’t going to give United Technologies monopoly over it. The new company after the acquisition will be named as Collins Aerospace Systems. The company will have former Rockwell Collins CEO Kelly Ortberg as the chief while Dave Gitlin, will serve as the president and COO. CEO Greg Hayes of UTC says that the company is now looking to produce more technologically advanced equipment to make safer and modern aircraft.

United Technologies is looking to make up for the $10 billion which it has stumbled upon in the aerospace division. The aerospace division accounts for half of the sales at UTC while the rest is accounted by elevators, air conditioners, and other building systems. Rockwell Collins was about to acquire B/E Aerospace earlier this year but had to pull out of it. The deal valued at $8.6 billion included deluxe jetliner seats, lavatories, galley equipment and advanced avionics systems. United Technologies sold its Sikorsky helicopter division to Lockheed Martin Corp for $9 billion in 2015. However, the company later turned down a merger proposal by Honeywell International Inc. proposed to be close to $90 billion.

The aerospace industry is plagued by the high cost of components especially by airframe manufacturers like Boeing and Airbus. Rockwell Collins has the world’s largest airlines, airports and private-jet operators as its primary customers. The latest acquisition could well integrate the market that is dominated by just a few big names. United Technologies-Rockwell Collins take the business back to early days of U.S. aviation industry. Collins was the earliest makers of short0wave radios and other communication devices. United Technologies was earlier known as United Aircraft and Transport Corp. a company started by Boeing and Pratt & Whitney.

The deal at United Technologies taken care by Morgan Stanley who served as the financial advisor. JPMorgan Chase & Co. and Citigroup Inc. were financial advisers to Rockwell Collins.