Rockwell Collins Merger Has Only One Remaining Hurdle
The merger of United Technologies and Rockwell Collins has been given approval by the U.S. Department of Justice (DOJ) with one stipulation. Aviation International News says approval from the DOJ hinged on "two of their overlapping businesses (being) divested." That means Rockwell Collins will have to sell two businesses. One is an ice-protection system that gets ice of the wings of aircraft along with one that helps planes keep the correct altitude.
The final piece needed for the merger to become official is approval from Chinese authorities. Gregory Hayes, chairman and CEO of United Technologies, believes that approval will come soon, now that the DOJ has signed off.
It was less than two months ago that it was announced United Technologies Corp. was buying Rockwell Collins for $30 billion dollars, the largest deal ever in the aerospace industry.
Michelle Quintagle, a spokesperson for United Technologies Corp., told Bloomberg,
The process for closing on Rockwell Collins is moving forward, with the recent U.S. Department of Justice approval being the latest milestone. Once we have received all of the necessary approvals, we will announce the final closing of this transaction.
Just when that announcement will come is still unknown, but it's much closer to reality following the Department of Justice's ruling.