UTC-Rockwell deal at risk from Boeing's opposition threat
The proposed $30bn merger of United Technologies (UTC) and Rockwell Collins could be at risk due to strong opposition from aerospace giant Boeing. Boeing said the deal between industrial conglomerate UTC and aviation supplier Rockwell Collins would not be its best interests and warned it could pursue regulatory options to scrutinise the deal. UTC CEO Greg Hayes said the deal would "enhance customer value".

WASHINGTON - Aerospace giant Boeing raised concerns Tuesday about the merger of US-based industrial conglomerate United Technologies and aviation equipment supplier Rockwell Collins, saying it could use its weight with regulators to scrutinize the deal.

Boeing said it was concerned the deal announced Monday would not be in the best interests of the company.

"We intend to take a hard look at the proposed combination of United Technologies and Rockwell Collins," Boeing said in a statement.

The company said it is "skeptical" whether the deal between two major suppliers to the aerospace industry "would be in the best interest of -- or add value to -- our customers and industry."

If Boeing decides the merger is "inconsistent with those interests, we would intend to exercise our contractual rights and pursue the appropriate regulatory options to protect our interests."

Both companies are significant suppliers to Boeing and "their first priority should be delivering on existing cost, schedule and quality commitments for their customers and ours."

In the $30 billion deal, including debt, United Technologies (UTC) will offer $140(R1812.45) per share Rockwell Collins, or $23 billion in addition to debt recovery.

UTC Chairman and CEO Greg Hayes said the deal would "enhance customer value."

United Technologies, headquartered in Farmington, Connecticut, has an annual turnover of $58 billion and employs more than 200,000 people.

UTC's aerospace activities represent a total turnover of $14.5 billion. It already owns Pratt & Whitney which makes aircraft engines and had revenue of $15.1 billion.

Rockwell Collins, based in Cedar Rapids, Iowa, manufactures electronic equipment for cockpits and cabins. It has annual turnover of $6 billion and employs 19,000 people. Last year it acquired the American group B/E Aerospace for $6.4 billion.

This latest deal comes after the acquisition of France's Zodiac Aerospace by its compatriot Safran in May.

The industry changes come as aircraft manufacturers are pressuring subcontractors to lower prices on equipment.