Honeywell and United Technologies timeline: What you need to know about last night's rejected bid and what brought the two companies to this point

Hayley Kirton
Follow Hayley
A visitor takes a closer look at a Honey
United Technologies feels like there are lessons to be had from Honeywell's failed tie-up with GE (Source: Getty)

Late last night, United Technologies' chief executive and president Greg Hayes issued a note revealing that the company had thrown out a takeover bid from rival Honeywell, slamming the offer for being "grossly" undervalued and stating that it would be "irresponsible to move forward with the proposed combination".

As Honeywell is left to tend to its wounds after Hayes' harsh words, here's how the two companies got to this point:

October 2000 - More than 15 years prior to last night's letter, Honeywell and United Technologies were in merger talks, until General Electric decided to put in an offer to buy Honeywell. Honeywell then terminated the potential deal with United, agreeing to be purchased by General Electric instead.

July 2001 - The European Commission, however, was not so happy to hear about the deal and blocked the takeover on the grounds that it would cause too severe a reduction in competition in the aerospace industry.

November 2015 - United Technologies finalises the sale of its Sikorsky Aircraft business to Lockheed Martin. The move was part of an effort to help streamline its business.

January 2016 - Honeywell announces sales of $38.6bn for its financial year 2015, down four per cent on the year before. Meanwhile, United Technologies reports sales of $56.1bn, down three per cent.

19 February 2016 - Honeywell presents its offer to purchase United Technologies.

23 February 2016 - Honeywell releases a statement regarding the discussions it has been having with United, noting: "We do not see the regulatory process as a material obstacle to a transaction".

24 February 2016 - Customers of United Technologies, including Airbus, Bombardier and Boeing, reacted to the offer and urge the company to reject Honeywell's proposal.

26 February 2016 - Hayes reveals that the Honeywell bid has been cast out, citing not only was the offer considered to be too low but it was also likely the tie-up would have been blocked by regulators anyway.

Related articles