December 12, 2017

Rockwell Collins sets Jan. 11 vote on UTC merger

Stockholders in Iowa avionics producer Rockwell Collins will vote Jan. 11 on their proposed $30 billion merger with Farmington industrial conglomerate United Technologies Corp., proxy papers show.

UTC and Rockwell Collins, of Cedar Rapids, Iowa, agreed Sept. 4 to a combination.

Rockwell Collins said in proxy documents filed with the Securities and Exchange Commission that its stockholders of record as of Dec. 8, 2017, are eligible to vote on the merger at the January meeting. The company also set Feb. 1 for its annual stockholders' meeting.

Their merger must be completed exactly one year from the announcement date, unless extended another six months -- to March 4, 2019 -- as allowed under the merger pact, according to proxy filings.

Both companies have said they expected to finalize the merger by the third quarter of 2018.

UTC is entitled to a $695 million termination fee from Rockwell Collins if UTC cancels the merger for cause, as spelled out in the merger agreement, proxy papers show.

UTC said that, post merger, the new company, Collins Aerospace Systems, will operate as a business unit.

As previously reported, the deal will make Farmington-based UTC an even larger player in the global aerospace industry. UTC is financing the deal with equity ($23 billion) and also will assume Rockwell Collins' $7 billion in debt.

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