United Technologies to Buy Rockwell Collins for $30 Bln

United Technologies (UTX) said Monday that it has agreed to buy Rockwell Collins (COL) for $140 a share in cash and stock, or about $30 billion.

COL was up 0.5% at $131.24 recently, in the 52-week range between $78.54 and $135.31. UTX was down nearly 5%.

Under the deal, each Rockwell Collins shareholder will receive $93.33 per share in cash and $46.67 in shares of UTX stock, subject to a 7.5% collar centered on United’s Aug. 22 closing share price of $115.69.

United Technologies said it expects the deal to be accretive to adjusted earnings per share after the first full year following closing and generate more than $500 million of run-rate pre-tax cost synergies by year four.

United Technologies also reaffirmed its expectations for 2017 sales of approximately $58.5 billion to $59.5 billion and adjusted earnings in the range of $6.45 to $6.60 per share.

The deal is expected to close by Q3 of 2018.

Meanwhile, Reuters reported that United Technologies is suspending share buybacks for three to four years in a move to reduce debt. The company will continue to pay dividends, the report said.

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