US: Boeing objects to United Technologies-Rockwell Collins buy

Aerospace giant Boeing raised concerns Tuesday, September 5, about the merger of US-based industrial conglomerate United Technologies and aviation equipment supplier Rockwell Collins, saying it could use its weight with regulators to scrutinize the deal.

Boeing said it was concerned the deal announced Monday would not be in the best interests of the company.

“We intend to take a hard look at the proposed combination of United Technologies and Rockwell Collins,” Boeing said in a statement.

The company said it is “skeptical” whether the deal between two major suppliers to the aerospace industry “would be in the best interest of — or add value to — our customers and industry.”

If Boeing decides the merger is “inconsistent with those interests, we would intend to exercise our contractual rights and pursue the appropriate regulatory options to protect our interests.”

Both companies are significant suppliers to Boeing and “their first priority should be delivering on existing cost, schedule and quality commitments for their customers and ours.”

In the US$30 billion deal, including debt, United Technologies will offer US$140 per share Rockwell Collins, or US$23 billion in addition to debt recovery.

Full Content: Financial Times

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.