• Thu, Sep. 14, 6:56 PM
    • Questions are surfacing over how antitrust authorities will treat United Technologies' (NYSE:UTX) proposed takeover of Rockwell Collins (NYSE:COL) amid a broader debate over whether the combination will drive up costs in the aerospace industry, WSJ reports.
    • Industry experts say Europe’s antitrust watchdog represents the biggest potential obstacle to the deal, "because scope, rather than just scale, matters,” says Bernstein's Doug Harned; while there is relatively little overlap between the two companies in terms of products manufactured - a primary focus of U.S. regulators - other countries consider non-tangibles such as the extent of a company’s dominance in a sector or segment of a supply chain.
    • UTX and COL make few of the same parts but could leverage their combined buying power to squeeze their own suppliers and demand higher prices from Airbus (OTCPK:EADSF, OTCPK:EADSY) and Boeing (NYSE:BA), which Harned says could attract the European regulator’s attention.
    • Attention also is on China, whose regulators are becoming a more important factor in aerospace deals; the deal requires approval of 17 regulators around the world.
    Thu, Sep. 14, 6:56 PM | 6 Comments
  • Wed, Sep. 6, 3:43 AM
    • The proposed $30B tie-up of United Technologies (NYSE:UTX) and Rockwell Collins (NYSE:COL), already criticized by customers and slammed by investors, could face a bumpy regulatory road to approval, especially in the European Union.
    • UTX and COL, who both supply airplane makers, say the overlap in their product lines is relatively small, but opponents of the deal could argue the combination would result in unfair market power since the companies are able to exercise leverage based on their sale of a wide range of specialized products to certain customers.
    • Boeing's (NYSE:BA) initial reaction was "skeptical" that the deal would benefit customers, and threatened to cancel some contracts with the two suppliers if the combination undermines competition in the aerospace supply chain.
    • Boeing and Airbus (OTCPK:EADSF, OTCPK:EADSY) will have a say on the merger’s fate because they both have “disproportionate influence” on deals throughout their supply chains, says William Blair analyst Nicholas Heymann, noting the planemakers hold contractual clauses that give them broad authority over parts production, essentially making each customer “a gatekeeper for potential structural changes in the supplier base.”
    Wed, Sep. 6, 3:43 AM | 12 Comments
  • Tue, Sep. 5, 12:06 PM
    • Boeing (BA -1.2%) is weighing in United Technologies' (UTX -4.7%) multibillion-dollar deal for Rockwell Collins (COL +0.6%) with skepticism, by hinting at taking action on the regulatory side.
    • In a statement, Boeing says "Should we determine that this deal is inconsistent" with its interests, "we would intend to exercise our contractual rights and pursue the appropriate regulatory options to protect our interests."
    • OEMs like Boeing and Airbus (EADSY +0.2%) have a strong interest in the deal since it would mean more of their supply chain being controlled by one firm.
    • For its part, Airbus says of the deal: “We hope it will not distract UTC from their top operational priority."
    Tue, Sep. 5, 12:06 PM | 3 Comments
  • Tue, Sep. 5, 10:44 AM
    • United Technologies (UTX -3.7%) slumps nearly 4% a day after its $30B acquisition, including $7B of debt, of Rockwell Collins (COL +0.7%), and UTX CEO Greg Hayes is out defending the deal.
    • “It gives us the opportunity to do things that we wouldn’t be able to do on our own,” Hayes said in a just-concluded conference call, adding that the combination with ROC will make it easier to meet demand for digital offerings and integrate aircraft systems with benefits such as reducing overall weight.
    • Hayes also tamps down speculation that UTX would look to sell or spin off other businesses such as Carrier air conditioners or Otis elevators, saying, "We need the cash flows from all the businesses to help pay down some of this debt” and retain an investment-grade credit rating.
    • The CEO sees $500M in deal synergies by the fourth year, with no changes to the dividend, expecting a 35%-40% payout with suspension of share buybacks for next 3-4 years.
    • Boeing (BA -1.2%) is lower, as the deal "may greatly concern aircraft OEMs such as Airbus and Boeing as they confront an ever increasing proportion of their supply chain controlled by a single supplier," says Stephen Perry, managing director at Janes Capital Partners.
    Tue, Sep. 5, 10:44 AM | 7 Comments
  • Oct. 24, 2016, 11:28 AM
    • Rockwell Collins (COL -6.5%) says its acquisition of B/E Aerospace (BEAV +15.3%) will triple its sales of equipment in new-generation widebody jetliners such as the Boeing 787 (BA +2.1%) and Airbus A350 (OTCPK:EADSF, OTCPK:EADSY).
    • COL CEO Kelly Ortberg also believes the acquisition will nearly double sales related to narrowbody jets, such as top sellers Boeing 737 and Airbus A320.
    • Aftermarket sales would help offset weakness in other parts of the combined company, such as sales to business jet manufacturers, which Ortberg expects will fall 15%-20% in FY 2017.
    Oct. 24, 2016, 11:28 AM
  • Jul. 20, 2016, 11:58 AM
    • The European Union approves Airbus (OTCPK:EADSF, OTCPK:EADSY) and Safran's (OTC:SAFRF, OTCPK:SAFRY) joint takeover of Europe’s premier rocket launch company Arianespace on condition that the companies implement measures to prevent the exchange of sensitive information.
    • The companies agree to put in place firewalls between Airbus and Arianespace to prevent information flows that could hurt competitors, not to share information about outside companies with each other that does not apply to the daily operation of the business, and to restrict employee mobility between the companies.
    • The EU decision, which was expected, likely will result in Airbus Safran's payment of ~€150M ($166M) to the French space agency CNES, which holds the 35% stake on behalf of the French government.
    Jul. 20, 2016, 11:58 AM
  • Apr. 3, 2016, 3:29 AM
    • The fleet implications of the rumored Alaska Air (NYSE:ALK) buyout of Virgin America (NASDAQ:VA) are "enormous," WSJ reporter John Ostrower writes.
    • Boeing (NYSE:BA) prides itself on its partners, including ALK, which flies only Boeings on its mainline subsidiary. With Virgin - an all-Airbus (OTCPK:EADSF) customer - Alaska Air could suddenly become an operator of Boeing, Airbus, Embraer (NYSE:ERJ) & Bombardier (OTCQX:BDRBF) aircraft. Or it might look to shed its non-Boeing jets and consolidate.
    • Alaska already has 30 aircraft on order from Embraer for its regional operations. Virgin, meanwhile, operates 60 Airbus jets, with another 40 on order.
    • Now read Boeing And Airbus: The Order Battle »
    Apr. 3, 2016, 3:29 AM | 8 Comments
  • Mar. 18, 2016, 4:10 PM
    • P-E firm KKR agrees to acquire Airbus' (OTCPK:EADSF, OTCPK:EADSY) defense electronics business for €1.1B ($1.2B), with the European aerospace firm possibly keeping a minority stake in the division during the transition period.
    • Airbus is shedding several areas to focus its defense division on missiles, warplanes, launchers and satellites.
    • The deal went ahead after Airbus excluded its border security business from the planned sale, having missed its goal of reaching a deal by early 2016 because of delays with a border project in Saudi Arabia.
    Mar. 18, 2016, 4:10 PM | 3 Comments
  • Feb. 24, 2016, 12:40 PM
    Feb. 24, 2016, 12:40 PM | 2 Comments
  • Dec. 7, 2015, 7:10 PM
    • Amid a company refocusing, Airbus (OTCPK:EADSY +2.2%) is looking at a sale of its Vector Aerospace services unit that could bring more than $800M, Reuters reports.
    • Sources say the company has hired investment bankers to run an auction for Toronto-based Vector, which it bought (as the former EADS) in 2011 for about $640M.
    • The unit has 2,300 employees and annual EBITDA of about $80M.
    • Airbus is also expecting to pick a buyer for its defense electronics division by the end of the year, and has authorized a €1B buyback to be wrapped up by June 2016.
    Dec. 7, 2015, 7:10 PM
  • Jul. 8, 2015, 6:43 PM
    • Lockheed Martin (NYSE:LMT) and Textron (NYSE:TXT) have emerged as final contenders to buy United Technologies' (NYSE:UTX) Sikorsky Aircraft unit, which could be valued at ~$8B, Reuters reports.
    • UTX reportedly is weighing offers from the two companies and may come to a decision by the end of the month, but it still could decide against an outright sale and instead spin off Sikorsky to shareholders in a tax-free deal.
    • TXT, whose ~$12B market cap is only one fifth the size of LMT's $60B, is said to have reached out to P-E firms to put together a cash bid.
    • Boeing (NYSE:BA), which had expressed interest in a potential deal, is no longer active in the sale process, and Airbus (OTCPK:EADSF, OTCPK:EADSY) is not in the running, according to the report.
    • UTX +1.5% AH.
    Jul. 8, 2015, 6:43 PM | 7 Comments
  • May 19, 2015, 6:51 PM
    May 19, 2015, 6:51 PM | 3 Comments
  • Mar. 23, 2015, 11:13 AM
    • Airbus (OTCPK:EADSY -1.1%) Defense and Space has agreed to sell aerospace engineering business Rostock System Technik to Ferchau Engineering for an undisclosed sum.
    • The move is part of plans to sell businesses with combined revenues of about €2B ($2.2B) to focus its defense and space unit on warplanes, missiles, launchers and satellites.
    • Rostock System Technik and Ferchau Engineering are both based in Germany.
    Mar. 23, 2015, 11:13 AM
  • Jun. 16, 2014, 4:48 AM
    • Airbus (EADSF) and Safran (SAFRF) are looking to come together in a joint venture to compete against low-cost U.S. rival SpaceX. The partnership will integrate Airbus Defense & Space with Safran's Herakles space propulsion unit.
    • The heads of each company are meeting with French President Francois Hollande early today, and are expected to talk about the countries space program in response to increased pressure from industrial groups to changeover Europe's rocket building public-private system.
    • SpaceX has recently unveiled its low cost space taxi, sticking another thorn in the sides of the two European giants.
    Jun. 16, 2014, 4:48 AM
  • Apr. 9, 2013, 4:16 AM

    French media company Lagardere (LGDDF.PK) has sold its 7% stake in aerospace and defense firm EADS  (EADSF.PK) in a private placement for €2.28B, or €37.43 a share. EADS placed an order of €500M in the transaction, which is part of a wider revamp of the company's ownership structure. (PR)

    Apr. 9, 2013, 4:16 AM
  • Oct. 11, 2012, 10:15 AM
    With defense budgets being slashed around the world, the collapse of the BAE's $45B merger with EADS will put the focus on possible deals between tier-two firms such as Rockwell Collins (COL), L-3 Communications (LLL), SAIC (SAI) and Harris (HRS), industry execs and bankers tell Reuters. Much could depend on whether Congress averts the automatic defense cuts that are due from Jan 1. Oct. 11, 2012, 10:15 AM | 5 Comments