NEW YORK (AP) - Industrial conglomerate Honeywell is touting the benefits of a possible combination with United Technologies and says regulators wouldn't be a big obstacle to the deal.
NEW YORK (AP) — Industrial conglomerate Honeywell is touting the benefits of a possible combination with United Technologies and says regulators wouldn't be a big obstacle to the deal.
Honeywell says consumers would benefit if it combined with United Technologies because the combined company would have a broader range of products. It also thinks the companies could cut $3.5 billion in costs after a merger and that they would be in a stronger financial position than their competitors. It says the two sides have discussed a deal over the past year.
United Technologies stock jumped almost 5 percent Monday on reports the companies had discussed a merger. After the market closed, the company said it had talked to Honeywell about a deal, but decided it wasn't feasible because regulators would not let two of the largest aerospace and commercial building companies combine. In regulatory filings each company lists the other as a major competitor in the aerospace industry. United Technologies' filing specifies that its Pratt & Whitney jet engine business competes with Honeywell's aircraft engine business.
Honeywell, based in Morris Plains, New Jersey, reported a profit of $4.77 billion in 2015 on $38.6 billion in revenue, while United Technologies of Farmington, Connecticut, earned $7.61 billion on $56.1 billion in revenue.
Honeywell International Inc. shares slipped 93 cents to $103.64 Tuesday, giving the company a market capitalization of almost $80 billion. United Technologies Corp. stock declined 77 cents to $91.60, and its valuation is just under $77 billion.