United Technologies (UTX) is on the verge of closing a $30 billion deal that would be the largest in aerospace history. The aerospace giant has just won U.S. Approval to buy avionics maker Rockwell Collins (COL), as long as it sells certain assets.
Speaking with Coins2Day’s Susie Gharib, United Technologies CEO Gregory Hayes says that during his 30-year career he always admired Rockwell as “the premier property in aerospace.”
“What Rockwell brings to UTC is something we’ve never had before, which is the digital cockpit,” he says. “It gives us the ability with Rockwell to connect the whole plane.”
But after the merger goes through, there’s a good chance United Technologies could break itself up. The massive industrial company has revenues of $66 billion dollars, more than 100,000 employees and is ranked number 51 on the Coins2Day 500 list of the biggest companies in America. Activist investors Bill Ackman of Pershing Square Capital Management, and Daniel Loeb of Third Point, have been pushing the Farmington, Connecticut company to split up into three businesses—Pratt & Whitney jet engines, Otis elevators and Carrier air conditioners.
Hayes says he can see the value of doing that. “They’re going to grow faster, I believe, faster decision-making, more nimble organization,” he explains. “All of those things can create more opportunity for the people and more value for our shareowners.”
Watch the video above for more from our interview with Hayes.
