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United Technologies rejects new Honeywell merger offer

Honeywell global headquarters sign in the US Image copyright Getty Images
Image caption Honeywell supplies parts to major plane manufacturers Boeing and Airbus

United Technologies has rebuffed another merger offer from Honeywell International on concerns it will not be approved by antitrust regulators.

Honeywell is said to have offered $108 (£76) per share for United Technologies last week, a more than 20% premium to the share price at the time.

United Technologies said the two firms only held "preliminary" conversations.

A tie up would have created one of the aerospace industry's largest companies worth more than $160bn.

However, United Technologies broke off talks because a deal "would face insurmountable regulatory obstacles and strong customer opposition".

"[It] could either be blocked outright or conditioned on significant divestitures after a lengthy and disruptive review period that would destroy shareholder value," it said in a statement.

This isn't the first time Honeywell and United Technologies have held merger talks.

The two firms explored combining in 2000 but United Technologies ended discussions after General Electric submitted a rival bid.

The subsequent GE and Honeywell deal was rejected by European regulators on fears it would lead to higher prices for airlines and consumers.

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