Gremlins abound

7 August 2017 By Robert Cyran Follow @rob_cyran

The $95 bln conglomerate is mulling an offer for Rockwell Collins, right after Boeing’s margins-sapping entry into the business. Honeywell is under pressure to sell its unit. The combination of earnings and activist pressure leaves aviation executives with some tough choices.

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United Technologies has offered to buy aircraft-component maker Rockwell Collins, Reuters reported on Aug. 4. Rockwell Collins’ market capitalization is $20 billion, whereas United Technologies is worth some $95 billion.

On July 31, Boeing said it is to set up a unit to produce avionics and electronics systems that are currently supplied by contractors such as Rockwell Collins and United Technologies.

Last year, United Technologies fended off a $90 billion takeover approach from Honeywell, citing probable antitrust problems from the combination.

In 2001, the European Union blocked General Electric’s planned $42 billion deal for Honeywell.

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