United Technologies has received Chinese approval for its acquisition of Rockwell Collins, clearing the final regulatory approval needed to close the deal.
China’s State Administration for Market Regulation gave the green light on 23 November, to the relief of investors who were concerned that the souring of US-China trade relations might hinder the deal.
United Technologies says the acquisition is expected to close within three business days.
US regulators gave the green light for the $30 billion deal on 1 October, on the condition that UTC divest two Rockwell divisions: one that makes pneumatic aircraft deicing systems, and another that makes horizontal stabilizer actuators. As the approval process progressed, however, US-China trade relations became strained amid new tariffs and tariff threats.
With the acquisition, UTC will merge its systems and electronics businesses into Rockwell’s cockpit and cabin products units to create Collins Aerospace Systems. The combination will give UTC leverage in future negotiations with OEMs, which have been applying pressure on supplier to lower prices and reduce operating margins.
Source: Cirium Dashboard