United Technologies nears acquisition of Rockwell Collins for US$ 20 billion

United Technologies nears acquisition of Rockwell Collins for US$ 20 billion

Warning: foreach() argument must be of type array|object, bool given in /home/mexiconow/public_html/sites/mexiconow/wp-content/themes/mexiconowwpnew/single.php on line 253

United Technologies Corp. is close to reach a deal to purchase Rockwell Collins Inc. for over US$ 20 billion, the agreement could be announced as soon as this weekend, the Wall Street Journal reported today.

United is considering a payment of no more than US$ 140 per share for Rockwell, which would imply a 9.4% premium over Rockwell's Monday closing price of US$ 127.99. That would put Rockwell at a market value of US$ 20.8 billion and create one of the world's largest aircraft equipment manufacturers.

The move seeks to wrest some power away from Boeing and Airbus as they squeeze suppliers, according to analysts consulted by Bloomberg. “You’d be creating an equipment supplier on a scale the world has never seen before,” said aerospace consultant Kevin Michaels. “It would be double the size of its nearest competitors,” he added.

Rockwell Collins owns a state-of-the-art facility in Mexicali, Baja California, where it manufactures communications and entertainment systems for commercial airliners and business and regional jets. With more than 100,000 square feet of production and warehouse space, this facility applies Lean principles to cellular production design for optimized workflow, improvement of quality and reduction of inventory.

United Technologies owns two manufacturing sites in Mexico. A production site also in Mexicali, Baja California, which builds different kinds of aero structures, including thrust reversers for the Boeing 787 Dreamliner nacelle system. Reversers for both the Rolls-Royce and General Electric engine variants of the Dreamliner are assembled there.

Also, the company operates in Guaymas, Sonora, a facility of its Engine & Environmental Control Systems division, where it produces blades and vanes for jet turbines.

In addition to these manufacturing sites the company operates a distribution center for commercial aircraft’s wheels and brakes in Mexico City, just outside the International Airport.


Related News

- United Technologies CEO praises Mexican workforce

- Rockwell Collins acquires B/E Aerospace; deal includes operations in Mexico

- Rockwell Collins to supply touch-screen flight displays for new Boeing 777X