United Technologies Corp. (NYSE: UTX) announced on Friday morning that it has received the final regulatory approval needed to close its acquisition of Rockwell Collins (NYSE: COL). The approval sent Rockwell Collins shares surging by 8.92% after the opening bell on Friday.
United Technologies shares rose by 2% on Friday.
United Technologies said it received its last approval and review by China’s State Administration for Market Regulation. With the approval from China, United Technologies said the acquisition is expected to close within the next three business days.
The acquisition was previously announced back in September 2017, but the transaction was delayed due to the regulatory issues. Investors were concerned that the deal might not be approved due to the ongoing tensions of the U.S. and China trade war since the deal was being held up.
According to CNBC United Technologies and Rockwell Collins are required to dispose certain assets and requirements related to the supply of aircraft components in the Chinese market.
Europe’s watchdog required United Technologies to sell businesses making actuators, pilot controls, ice protection and oxygen systems. Meanwhile, the U.S. required United Technologies to sell two Rockwell Collins’ businesses. One business sells systems that de-ice planes and the other sells trimmable horizontal stabilizer actuators that help aircrafts maintain altitude.
Under the deal, Rockwell Collins shareholders will receive USD 140.00 per share in stock and cash split. Shareholders will receive USD 93.33 in cash and USD 46.67 in stock.