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United Technologies Reaching $20 Billion Deal to Buy Rockwell Collins

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On Tuesday, The Wall Street Journal reported that United Technologies Corp. (UTX - Free Report) is nearing a deal to scoop up Rockwell Collins Inc. (COL - Free Report) for over $20 billion.

If completed, the deal would create one of the world’s largest aircraft-equipment manufacturers.

The Journal reported that United and Rockwell are considering an acquisition deal worth no more than $140 per share, representing a 9.4% premium over COL’s Monday closing price of $127.99 per share and placing a $20.8 billion market value on Rockwell.

Shares of United Tech, which is known for selling jet engines, landing gear, and wheels, are gaining about 2% in afternoon trading, while Rockwell stock is up about 1.7%. Rockwell is a leading supplier of aviation electronics like cockpit displays and communications systems.

Bloomberg reported on a possible deal earlier this month, pointing out that a deal would allow aircraft manufacturers “greater heft” as companies like Boeing (BA - Free Report) and Airbus “squeeze suppliers for price reductions amid a planned production increase of narrow-body jetliners.”

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