Potential impact on Honeywell. Comments?.
10 replies (most recent on top)
HON does business with both (commercial and defense), and you can be certain that the UTC/Raytheon corporate contracts personnel will look for the best T&C's in all contracts to force better terms for business. It will definitely impact HON's bottom line. Little opportunity in defense, but commercial is wide open.
No impact; Ray and UTX have no overlap, completely different companies. RAY nothing similar to HON. I am sure the big shots at HON are / have been looking for deals. They get to put lots of money in their pockets when deals made. Big merger / buyout - all they would care about is their cut.
They are already discussing it on raytheons and uti pages here on thelayoff
Once again, HON is left without a dance partner.....for those of you who have forgotten that DC tried too make a deal with UTC (with himself in charge) and having failed that, he retired.....
Little or no impact on Honeywell, and finally k--ls those UTC/Honeywell merger rumors that ignored all of the antitrust issues with Honeywell/UTC product overlap.
-erq: Military parts for missiles or whatever else that Honeywell might supply to Raytheon and the engineering data associated with them are export controlled and that data cannot be transferred outside of the USA without an export license approved by our government. It's not going to happen.
The interesting lines in those stories about the merger is WHY they want to merge non-overlapping businesses. the rationale is that defense contracts will shrink sharply in the next few years and that a more diverse and larger company will do better.
Message -- look out defense plants that have been fat on defense contracts ( Dontcha know who I mean ) the gravy train will end soon.
UTC competes with honeywell in a few areas where Raytheon is the end customer (missiles mostly I would think). This is just another example of primes moving to become vertically integrated. Meanwhile honeywell executives continue to jabber on about the need to focus on our "core" strength and outsource everything possible regardless of the cost and loss of expertise. one particular aero director is especially vocal on that strategy, wants to be the next MM I suppose. I have to hear it every day in staff meetings.
Raytheon products aren't competing with Honeywell so I wouldn't see any impact with a possible merger with UTC.
I think honeywell will merge with some company.