Honeywell Does Not See Regulatory Process As A Material Obstacle To UTX Deal

(RTTNews) - Honeywell International Inc. (HON) confirmed that it had engaged in discussions with United Technologies Corp. (UTX) over the past year regarding a possible business combination. The company said it did not see the regulatory process as a material obstacle to a transaction.

The value creation from a combination is significant, including the benefits of $3.5 billion in annualized cost synergies.

Honeywell believes the combined company's financial profile would be stronger than the highest valued peers in the multi-industry group today, creating an opportunity for incremental value for both sets of shareowners over the short- and long-term.

A combined Honeywell and United Technologies would maintain a strong investment grade rating, and have higher free cash flow and a rapid deleveraging profile, the company added.