Honeywell Drops United Technologies Pursuit After Impasse Getty Images

Honeywell Drops United Technologies Pursuit After Impasse

"Continuing to try to negotiate with an unwilling partner is inconsistent with our disciplined acquisition process," said Honeywell CEO David Cote.

Honeywell International Inc. said it would no longer pursue a combination with United Technologies Corp. due to the target company’s unwillingness to negotiate.

Honeywell “strongly disagrees” with United Technologies’ claim that a tie-up of the aerospace giants would run afoul of antitrust regulators and generate customer resistance, Honeywell said Tuesday in a statement. A deal would have created value for investors by combining complementary portfolios, the company said.

“We made a full and fair offer that would have greatly benefited both sets of shareowners,” Honeywell Chief Executive Officer David Cote said in the statement. “However, continuing to try to negotiate with an unwilling partner is inconsistent with our disciplined acquisition process.”

United Technologies fell as much as 4% to $92.75 in premarket trading after the announcement. Honeywell rose as much as 2.5% to $103.85.

Honeywell approached United Technologies Feb. 19 about a tie-up that would create an aerospace and building-products behemoth with more than $90 billion in annual sales. Honeywell, based in Morris Plains, New Jersey, later released details of the $108-a-share offer, which it said would generate $3.5 billion of cost savings.

United Technologies rejected the proposal, saying it undervalued the company and would face heavy opposition from antitrust regulators. In a presentation released last week, the Farmington, Connecticut-based company also cited public statements opposing the deal from large customers such as Airbus Group SE and Embraer SA.

Honeywell sells products spanning thermostats, cockpit voice recorders and systems for fighter jets, while United Technologies’ key offerings include Otis elevators and Pratt & Whitney aircraft engines.

Cote will address analysts and shareholders at an investor conference Wednesday.

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