United Technologies Corp. (NYSE: UTX) is nearing a deal with Rockwell Collins Inc. (NYSE: COL) valued at $20 billion. The two companies are in the works of negotiating a per share price of $140 or less. The agreement could finish as early as this weekend, according to Wall Street Journal.
United Technologies researches, develops, and even manufactures high-tech products for aircrafts and aerospace systems. By acquiring Rockwell, this would put United’s aerospace unit in a strong position, allowing the company to build newer generation of aircrafts.
Rockwell develops cockpit displays and communications systems for passenger jets and military programs. It closed on Monday at $127.99, pushing its market value up to approximately $20.8 billion. While United Technologies has a market value of about $92 billion.
Although, some sources say that the deal is nearing, unidentified sources say that Rockwell has been working with an investment bank to review the deal, but there is no certainty that it will decide to engage in any further negotiations with United Technologies, according to Reuters.
For Rockwell, this deal would help them improve upon its communication systems that will significantly help improve operations and maintenance on the aircrafts.