United Technologies (UTX) and Rockwell Collins (COL) are inching toward an accord for the biggest-ever merger in the aerospace industry, with Boeing (BA) withdrawing its objection. Surprisingly, there are hardly any regulatory obstacles to this merger. The deal didn’t stumble on any antitrust issues. But it did disturb Boeing and European rival Airbus, both voicing their opinion against the mega-deal stating that it would damage competition.
This is not the first that Boeing and Airbus have been against a potential merger in its sector. Both companies displayed a similar disagreement when Honeywell and United Tech were musing on a deal.
The two giants were tough on this new merger as well. Boeing even threatened to end some of its contracts with United Tech’s UTC aerospace system division and Rockwell — Boeing’s major suppliers of avionic systems — as the union of the two companies could cut competition within the supply chain. Many have pointed out that the potential merger would hit Boeing’s in-house supplier Boeing Avionics, dragging it into the competition.
But all that is in the past now, with Boeing giving its thumbs up on United Tech and Rockwell’s mega-deal. The aircraft giant changed its statements after it reached an agreement with the two suppliers to help assist the company’s cost-cutting initiative.
Most Popular
Important takeaways from Paychex’s (PAYX) Q2 2025 earnings report
Paychex Inc. (NASDAQ: PAYX), a leading provider of human resources and payroll services, reported better-than-expected revenue and profit for the second quarter of fiscal 2025, sending the stock higher soon
Lamb Weston’s (LW) challenges may not end soon, a few points to note
Shares of Lamb Weston Holdings, Inc. (NYSE: LW) turned red in mid-day trade on Friday. The stock has dropped 19% in the past one month. The company delivered disappointing results
CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%
Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss