Honeywell Confirms It Will No Longer Pursue A Combination With United Technologies

Wall Street analysts and investors who were scrambling to evaluate what a potential

-

would look like can now stop doing so. Honeywell

on Tuesday that it is no longer pursuing a strategic combination with United Technologies due to their "unwillingness to engage in negotiations." Honeywell added that the two companies have been engaged in some form of on-again-off-again merger discussions dating back 15 years. In fact, United Technologies most recently approached Honeywell in May 2011 and in April 2015. "We made a full and fair offer that would have greatly benefitted both sets of shareowners," said Honeywell Chairman and CEO, Dave Cote. "Considerable value would have been added through the $3.5 billion of very achievable cost synergies (6% of UTX sales, 4% of total sales) and application of Honeywell management practices, especially our extensive software capability and cost management that would support needed product reinvestment. It also would have created the opportunity to construct an excellent core growth portfolio." Cote added that negotiating with an "unwilling partner" is "inconsistent" with the company's disciplined approach to acquisitions. Accordingly, the company will renew its focus on its "terrific growth story" for a standalone company which will be shared with investors on Wednesday during an Investor Day presentation. Shares of Honeywell were trading higher by nearly 4 percent at $105.38 Tuesday afternoon while shares of United Technologies were lower by more than 2 percent at $94.37.