Boeing, Airbus Raise Concerns Over Proposed United Tech-Rockwell Collins Deal

Boeing and Airbus have raised concerns about United Technologies plan to acquire Rockwell Collins saying that the deal would raise costs and slow down production of planes.

Boeing and Airbus are equipment clients of United Technologies and Rockwell Collins. The comes came a day after UTC announced plans to buy Rockwell for an estimated $22.75 billion, Associated Press reported Tuesday.

The deal is said to create an aerospace giant that makes plane seats, landing systems and flight control decks for commercial and military planes.

United Technologies  expects to complete the deal within this year. It would combine its aerospace unit with Rockwell Collins and name it Collins Aerospace Systems.

Boeing and Airbus raised concerns Tuesday about the proposed tie-up of industrial company United Technologies and aerospace parts maker Rockwell Collins, saying that the deal could raise costs or slow the production of planes. Boeing and Airbus both buy equipment from United Tech and Rockwell Collins.

The comments from the two companies came a day after United Tech announced plans to buy Rockwell Collins for about $22.75 billion. The deal would create an aerospace giant that makes plane seats, landing systems and flight control decks for commercial and military planes.

United Tech said that after the deal is completed, which it expects to happen within a year, it would combine its aerospace unit with Rockwell Collins and rename it Collins Aerospace Systems. That unit is expected to bring in more than $23 billion in sales a year.

“Should we determine that this deal is inconsistent with those interests, we would intend to exercise our contractual rights and pursue the appropriate regulatory options to protect our interests,” Boeing said.