United Technologies received a key antitrust approval from China on Friday for the industrial giant’s purchase of aircraft parts maker Rockwell Collins.
Rockwell Collins shares jumped 9.2 percent in trading, closing at $141.63 a share, while United Technologies’ stock rose 2.7 percent to $129.04 a share. Shareholders were concerned that the deal would become a victim of the trade war between United States and China since the Chinese government’s decision was delayed from September.
The $23 billion deal won antitrust approval from the United States and the European Union earlier this year. United Technologies’ acquisition is the largest in aerospace history. Combined, the two aerospace suppliers brought in nearly $67 billion in revenue last year.
United Technologies makes Pratt & Whitney engines and other plane parts, acting as a major supplier to large aircraft manufacturers such as Boeing and Airbus.
As with approval from U.S. and European regulators, China’s approval requires United Technologies and Rockwell Collins to dispose of certain assets and some requirements related to the supply of aircraft components in the Chinese market. Europe’s competition watchdog required United Technologies sell businesses making actuators, pilot controls, ice protection and oxygen systems. To win U.S. approval, United Technologies agreed to sell two Rockwell Collins’ businesses: One that sells systems that de-ice planes and one that sells trimmable horizontal stabilizer actuators that help aircraft maintain altitude.
Under the deal announced in September 2017, Rockwell shareholders will receive $140 per share in stock and cash, split between $93.33 in cash and $46.67 in United Tech stock, the companies said in a statement.
