As stated in an email by Hans Weber, the President of a consultancy of San Diego based the Tecop International Inc., this indeed a significant deal that took place between the aviation industry and the UTC.
United Technologies Corp. now becomes a giant of aerospace technologies after agreeing to buy Rockwell Collins Inc. at an approx amount of $23 billion. United Tech can now grab any warplanes and jetliners from top to bottom.
This transaction is one of the biggest that took place in the aviation history ever, which builds giant aircraft-parts better to combat the squash from Airbus SE and Boeing Co. plane-makers for higher outputs and discounts in price. For commercial aircraft, this resulting company will boast a wide suite of products, from Collin’s jet engines to touchscreen cockpits displays that are made by the United Technology’s Pratt & Whitney division.
After buying Rockwell Collins that delivers avionics systems for the 787 plane-makers of the U.S., UTC will probably become the most significant supplier for the Boeing, and will also hold a strong position of negotiating as Boeing to put price pressure on suppliers.
The companies stated on Monday that both in cash and stock the shareholders of Rockwell Collin will receive a share price of $140. It was before the deal talks reported by the Bloomberg News report that the price holds a premium percentage of 18/- to the closing level of Rockwell on 4th of August. After this, on 1st Sept. an Iowa- based company, the Cedar Rapids has closed at $130.61, and in that span, United Technologies fell to 2.9%. The total value of deal including the net debt is $30 billion.
After combining its aerospace business with the Rockwell Collins the United Technologies is planning to go for a new unit name called the “Collins Aerospace System”. CEO of Rockwell, Kelly Ortberg will head the division, and on another hand, the Dave Gitlin who runs the UTC Aerospace system currently will be serving as a chief officer and the president.