Boeing Co., said it is skeptical about the United Technologies/Rockwell Collins deal being in the best interest of its customers and industry
This Dec. 6, 2016, file photo shows the United Technologies Electronic Controls factory in Huntington, Indiana. United Technologies is acquiring Rockwell Collins for $22.75 billion in order to expand its aerospace capabilities. United Tech, which makes Otis elevators and Pratt & Whitney engines, said Monday, Sept. 4, 2017, it's paying $140 per share in cash and stock for Rockwell Collins, a 9.4 premium over Tuesday's closing price, when reports of a deal surfaced. (AP Photo/Michael Conroy, File), photo: AP/Michael Conroy, File
05 of September 2017 18:23:34
NEW YORK – Airplane makers Boeing and Airbus raised concerns Tuesday about the proposed tie-up of industrial company United Technologies and aerospace parts maker Rockwell Collins, saying that the deal could raise costs or slow the production of planes. Boeing and Airbus both buy equipment from United Tech and Rockwell Collins.The comments from the two companies came a day after United Tech announced plans to buy Rockwell Collins for about $22.75 billion. The deal would create an aerospace giant that makes plane seats, landing systems and flight control decks for commercial and military planes.United Tech said that after the deal is completed, which it expects to happen within a year, it would combine its aerospace unit with Rockwell Collins and rename it Collins Aerospace Systems. That unit is expected to bring in more than $23 billion in sales a year.Chicago-based Boeing Co., however, said it will take a "hard look" at the proposed acquisition but is skeptical that it would be in the best interest of its customers and industry."Should we determine that this deal is inconsistent with those interests, we would intend to exercise our contractual rights and pursue the appropriate regulatory options to protect our interests," Boeing said.