Aeroplane-equipment giant United Technologies is closing in on a more than $US20 billion buyout of competitor Rockwell Collins, according to a report from The Wall Street Journal.
Discussions are reportedly ongoing, but negotiations have focused on a deal price of less than $US140 per share for Rockwell, according to the Journal. The company was trading up about 2% to $US130 per share late Tuesday morning, giving it a marketcap of $US21.7 billion.
United Technologies, which does business with Boeing and Airbus, is up 1.2% and has a marketcap of more than $US93 billion.
If the deal is finalised, it would create one of the largest airline-parts suppliers in the world.
But analysts don’t expect antitrust issues to flub a potential acquisition, according to the report, as the companies make different aeroplane parts. Bloomberg reported in early August that United Technologies was weighing a deal.
United Technologies sells jet engines, landing gear, and wheels; Rockwell Collins supplies cockpit displays, communications systems, and seats.