Honeywell ends UTC merger speculation
Honeywell says it is no longer pursuing a strategic combination with United Technologies due to that company’s “unwillingness to engage in negotiations.” The two companies have had discussions of a strategic combination several times over the past few years.
Honeywell says the two companies have largely complementary business portfolios and the combination would have created value for both sets of shareholders.
“We remain confident that the regulatory process would not have presented a material obstacle to a transaction. United Technologies felt the same way as we do when they approached us in May, 2011 and in April, 2015,” reads a Honeywell statement.
As recently as February 2016, “we had hoped to continue amicable and quiet discussions of a combination,” the statement continues. “However, continuing to try to negotiate with an unwilling partner is inconsistent with our disciplined acquisition process.”
United Technologies responded with: “This is the appropriate outcome given the strong regulatory obstacles, negative customer reaction and the potential for a protracted review process that would have destroyed shareholder value.”
United Technologies Corp. provides high-technology systems and services to the building and aerospace industries, including fire safety, security, building automation, heating, ventilation, air conditioning and refrigeration systems.
Honeywell is a diversified technology and manufacturing company, providing aerospace products and services; control technologies for buildings, homes, and industry; turbochargers; and performance materials.