2017.09.0423:00:00UTC+00United Technologies Closes $30 Billion Rockwell Collins Deal

United Technologies Corp. has reached a deal acquire Rockwell Collins for $30 billion in the latest string of M&as in the sector.

The purchase of the aviation systems and cabin equipment maker will be a cash-and-stock deal that values Rockwell shares at $140 a piece, marking an almost 20 percent premium compared to the share's trading price a month ago when it first surfaced that UTC had its eye on Rockwell. Shares of Rockwell ended at $130.61 on Friday.

Shareholders of Rockwell will be offered $93.33 in cash and $46.67 in UTC stock. The stock will be subject to a 7.5 percent collar derived from UTC's closing share price on August 22, which stood at $115.69.

The deal was first reported by The Wall Street Journal and later confirmed by the companies. The agreement comes after weeks of speculated discussions. It is expected to be completed by the third quarter of 2018, and subject to the approval of Rockwell shareholders and regulatory authorities.

One the M&A is completed, a new unit Collins Aerospace Systems will be established. It will be headed by Rockwell's current CEO Kelly Ortberg. The merger is the third biggest deal in the aircraft suppliers sector.