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Two companies that supply parts to the likes of Boeing, Airbus, and Lockheed Martin will merge in one of the largest aerospace deals ever:
United Technologies Corp. agreed to buy Rockwell Collins Inc. for about $23 billion, creating an aerospace behemoth that can outfit jetliners and warplanes from tip to tail.
The transaction, one of the biggest in aviation history, creates an aircraft-parts giant better positioned to withstand the squeeze from planemakers Boeing Co. and Airbus SE for pricing discounts and higher output. The resulting company will boast a broad suite of products for commercial aircraft, from Rockwell Collins's touchscreen cockpit displays to jet engines made by the Pratt & Whitney division of United Technologies.
"This is a significant deal for UTC and the aviation industry in general," Hans Weber, president of San Diego-based consultancy Tecop International Inc., said in an email. By buying Rockwell Collins, which delivers avionics systems for the U.S. planemaker's 787, "UTC becomes a critically important supplier to Boeing and will have a strong negotiating position as Boeing is putting price pressure on suppliers."
The deal is $23 billion, or $30 billion including debt. The combined company is expected to have annual sales of $34 billion.
(Score: 0) by Anonymous Coward on Wednesday September 06 2017, @06:51PM
The fewer competitors there are, the more service and prices suck. Been that way forever, per railroads, cars, telecoms, chips, OS's, social networks, etc. Some use the "economies of scale" argument, but it's usually exaggerated. Multiple companies can combine resources for difficult tech if and when needed.