United Technologies Corp (NYSE:UTX) is closing in on a deal to buy Rockwell Collins Inc (NYSE:COL) for nearly US$30bn including debt as consolidation among the world’s biggest aircraft parts suppliers continues.
A report in the Financial Times said that the deal was likely to end up valuing Rockwell at around US$140 per share, with the stock currently trading at US$132 each in pre-market trading today, up around 1% from last night’s close.
That gives the company a market value of around US$21.2bn, wile it has net debt of around US$7bn.
A takeover of Rockwell Collins by UTC – which makes Pratt & Whitney jet engines, as well as Otis elevators, and Carrier air conditioning units – would create a group worth around US$93bn.
The Financial Times said it could also give UTC the option of separating its aerospace and aviation business from the rest of the company, with the United Technologies Aerospace Systems division already one of the world’s biggest aerospace parts suppliers for both Boeing and Airbus.
If a takeover does happens it would mark the third major deal among aircraft suppliers in less than a year.
Just a few months ago, Rockwell completed its own US$8.6bn acquisition of B/E Aerospace.
And earlier this year, French aero-engine maker Safran agreed to purchase French aerospace equipment maker Zodiac for €8.7bn including debt.