Avionics maker Rockwell Collins, headquartered in Cedar Rapids, is being purchased by Connecticut-based rival United Technologies for US$23 billion.
Iowa Senator Chuck Grassley says it’s still unclear whether there may be any antitrust issues that derail the deal. “It will get vigorous review by the Justice Department, as all mergers do,” Grassley says. “We’ll just have to let nature take its course and generally, things are followed in a fairly non-political way, in regard to that.”
The sale was announced Monday night, September 4. Rockwell reportedly has about US$7 billion in debt, pushing the deal to be valued at US$30 billion.
“I will be having a conversation with the CEOs of United Technology on one hand and Rockwell Collins on the other hand,” Grassley says. “We’ll just have to wait and see what they tell me.” Rockwell Collins employs about 30,000 people globally, including 8,000 in Cedar Rapids. It’s unclear how many of them may face losing their jobs with the acquisition.
Grassley says, “I’m going to be very concerned that jobs not leave Cedar Rapids and Manchester and there’s a couple of other places they have plants in Iowa.”
Rockwell makes a variety of technology used in aviation, ranging from radar systems to the seats in airliners, while part of United Technologies makes aircraft components, including engines.
Full Content: Trading & KMCH
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Conducts First-Ever Raids on a Company Under Foreign Subsidies Regulation
Apr 23, 2024 by
CPI
FTC Moves to Ban Non-Compete Agreements, Aiming to Boost Labor Mobility
Apr 23, 2024 by
CPI
Federal Judge Nods at $418M Deal in Real Estate Antitrust Suit
Apr 23, 2024 by
CPI
Mexican Watchdog Probes Amazon and Mercado Libre Over Loyalty Bundles
Apr 23, 2024 by
CPI
Competition Commission of India to Probe AI Landscape for Competition
Apr 23, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI