China approves the signing of an agreement on the UTC aerospace in a few days

China's regulatory authorities on Friday approved the $ 30 billion acquisition of aerospace manufacturer Rockwell Collins Inc. by United Technologies Corp., allowing the Connecticut conglomerate to enter into a partnership agreement and assert itself as a dominant player in the aerospace sector.

In its anti-monopoly review, China's State Administration for Market Regulation made it conditional on UTC and Rockwell Collins selling certain assets.

Rockwell Collins shares climbed 9% to $ 141.49 in the morning. UTC jumped 2% to $ 128.81.

Analysts question whether UTC's deal with the United States has caught on

UTC said it was now hoping to close the deal here next week. The manufacturer of jet engines, air and air transport components, elevators and heating and cooling equipment based in Farmington announced the signing of the agreement in September 2017.

It got the approval of the US Department of Justice in October and the support of the Chinese regulators was the last hurdle to cross for UTC.

The acquisition makes UTC a major player in the aerospace industry. In 2012, it paid $ 18 billion to Goodrich Corp., a North Carolina-based aviation manufacturer, which gave UTC a significant presence in the manufacture of landing gear, brakes and other components. .

With the Rockwell Collins case, UTC is now a manufacturer of avionics equipment and equipment for cockpits and cabins that collect and interpret flight data.

The new unit, known as Collins Aerospace, will be the merger of Rockwell Collins, based in Cedar Rapids, Iowa, and UTC Aerospace Systems, UTC's aviation parts manufacturer.

Collins Aerospace will employ nearly 20,000 engineers, said David Gitlin, president of UTC Aerospace Systems in March.

UTC benefits from a rapidly growing aerospace market as the number of passengers increases in Europe and North America, as well as in India and China, creating a middle class and a business world that increasingly relies on air transport.

China's approval did not come quickly, prompting analysts to question whether the agreement was in disputes over tariffs, trade and international politics.

Gregory Hayes, chairman and CEO of UTC, assured industry analysts that the Rockwell Collins case was not hampered by unrelated disputes with President Donald Trump over trade and tariffs.

He had initially announced to analysts that the deal would be concluded on September 30th. On October 23, Hayes said he expects it to be approved within two to six weeks.

Following the conclusion of the Rockwell Collins agreement, UTC will now focus more and more on the composition of its business portfolio. With a major presence in the aerospace, UTC is under pressure from investors to part with its range of activities.

The focus on aviation is expected to add value for shareholders by abandoning Otis elevator, heating and cooling and building safety activities from UTC to UTC.

One of the possibilities is to break into three activities: aerospace, which includes jet engine manufacturers Pratt & Whitney and Collins Aerospace; UTC Climate, Controls & Security, which includes Carrier heating and cooling equipment and building safety systems; and the Otis lift.

A decision on the future of UTC's activities is expected by the end of the year.