Economy

US approves United Tech purchase of Rockwell Collins

Key Points
  • United Technologies Corp has won U.S. approval to buy avionics maker Rockwell Collins Inc, as long as it makes certain divestments.
  • To win U.S. approval for the deal, UTC agreed to sell two Rockwell Collins' businesses.
  • The $23 billion acquisition would be the largest in aerospace history.
Greg Hayes
CNBC

U.S. aerospace and industrial company United Technologies Corp has won U.S. approval to buy avionics maker Rockwell Collins Inc, as long as it makes certain divestments, the Justice Department said on Monday.

The $23 billion deal won antitrust approval from the European Union in May. The companies are still awaiting approval from China.

To win U.S. approval for the deal, UTC agreed to sell two Rockwell Collins' businesses - one that sells systems that de-ice planes and another that sells trimmable horizontal stabilizer actuators that help aircraft maintain altitude.

The acquisition, announced in September 2017, would be the largest in aerospace history and create a new player in the top echelon of suppliers to Boeing, Airbus, Bombardier and other plane makers.