United Technologies and Honeywell are reportedly discussing a merger once again, according to a report by CNBC. The talks reportedly came within the last two weeks, with Honeywell acquiring United Technologies. This is not the first time that the two companies have held merger talks over the course of the last year. Honeywell and United Technologies declined to comment on the report.
United Technologies and Honeywell Business synergies
United Technologies makes jet engines, elevators, and heating and cooling equipment. It reported a profit of $7.6 billion last year on sales of $56.1 billion. Honeywell is involved with aerospace, along with oil and gas refining, petrochemicals, biofuelsproducts, and building systems equipment. The company reported net income of $4.8 billion on revenue of $38.6 billion last year. United Technologies has been shifted its business mix over the course of the last four years. It purchase Goodrich Corporation for $16.5 billion in 2012, the biggest deal ever for United Technologies. The company also divested its Sikorsky helicopter subsidiary, selling the unit to Lockheed Martin last year for $9 billion. A merger between the two would potentially face tough scrutiny from regulators in the United States and Europe. The reasons behind the merger talks may very well be business cost savings in the areas where the two companies business’s overlap. The two companies both compete in engine systems & controls and helicopters & general aviation aircraft engines.
