United Technologies has withdrawn from merger negotiations with Honeywell due to competition issues and valuation concerns.
United Technologies confirmed it has ‘previously engaged in preliminary, exploratory conversations about a range of potential collaborative options’ with Honeywell.
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However, UTC said it never explored these options further due to significant regulatory obstacles, customer concerns and valuation issues.
If this transaction went ahead, it would combine two firms that manufacture elevators and jet engines.
However, as the two businesses have overlapping segments such as aerospace, the deal was bound to face regulatory hurdles, reported The Wall Street Journal.
Each company is valued at more than $70bn, with more than 300,000 employees combined.
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By GlobalDataLast year, United Technologies approached Honeywell for a potential merger, reported the publication. The two firms were not able to agree on core points, including the company that would operate the combined firm.
Honeywell believed this merger would enable cost savings of $3.5bn, but the board of United Technologies opposed the offer.
During the last few weeks, Honeywell offered a price of $108 for each share, the publication reported.
