Honeywell drops $90bn offer to buy United Tech

Honeywell drops $90bn offer to buy United Tech

Honeywell International Inc (HON.N), the aircraft parts maker has ended its previous offer to buy rival company  United Technologies Corp (UTX.N), due to their  “unwillingness to engage in negotiations.”

United Technologies have said in response to Honeywell’s decision that it was an “appropriate outcome given the strong regulatory obstacles, negative customer reaction and the potential for a protracted review process that would have destroyed shareholder value.”

Honeywell Chairman and CEO Dave Cote has said in a statement:

“From both an industrial logic and shareholder value perspective, Honeywell and United Technologies are a great match and that is why the two companies have been talking about a combination for more than 15 years. We made a full and fair offer that would have greatly benefited both sets of share owners.”

If the deal had gone ahead, it would have created a company responsible for a huge amount of equipment on commercial airliners including landing gear and cockpits.

Shares of United Tech were down 3.5% in early trading on Tuesday, while Honeywell was up 2.7%