Honeywell International Inc. and United Technologies Inc. have tried a number of times to initiate a merger, but all the attempts have so far failed. With the latest reported merger talks between the two companies, it seems like an agreement won't be reached once again, according to BBC News.
Sources, who have opted to remain anonymous, have stated that the two companies have recently held preliminary merger talks, but hesitation on United Tech's part has once more caused the negotiations to fail.
Honeywell has allegedly offered United tech $108 per share last week, which is almost a 25 percent premium over the latter's share price at the time. Apart from this Honeywell also allegedly offered cash, reports The New York Times.
United Technologies, however, remained hesitant, ultimately rejecting the offer. In an announcement on Monday, the company stated that it broke off talks because there's a good chance that the merger "would face insurmountable regulatory obstacles and strong customer opposition."
If the two companies do indeed merge, it would create a behemoth with a combined sales north of $90 billion, mainly due to the companies being suppliers of a huge amount of equipment for commercial airlines, from jet engines to cockpits to landing gear, reports Reuters through MSN Money.
Thus, a merger would probably face strong opposition from aircraft makers such as Boeing and Airbus, as well as the Pentagon. One of the sources emphasized that a merger of Honeywell and United Tech would just be a bit too much for competitors in the market.
"If you put these two companies together, they would build the plane from tip to tail. There's just no way that Boeing and Airbus would ever accept that," one of the sources said.
