Jet engine maker United Technologies Corp (UTC) has agreed to buy airline parts maker Rockwell Collins in a deal worth $30 billion, the group announced early on Tuesday.

UTC is the maker of Pratt & Whitney jet engines, with Rockwell Collins one of the leading developers of aviation systems and cabin equipment. The cash-and-stock offer values Rockwell shares at $140, with shareholders being offered $93.33 in cash and $46.67 in UTC stock under the terms of the deal.

The tie-up is expected to be one of the biggest deals in aviation history and should, after its completion towards the end of next year, give UTC more negotiating power against industry giants Boeing and Airbus.

UTC chief executive Greg Hayes, who will remain as CEO of the combined company, commented:

“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems.

“Together, Rockwell Collins and UTC Aerospace Systems will enhance customer value in a rapidly evolving aerospace industry by making aircraft more intelligent and more connected.”

Rockwell Collins shares are currently trading down 0.34 percent on the news, at 130.61. United Technologies shares are also trading down1.50 percent at 117.92 (1023GMT).