“Today's conclusion of the regulatory review by China's State Administration for Market Regulation clears the way for United Technologies to proceed with the proposed acquisition announced on Sept. 4, 2017,” UTC said Nov. 23. “The acquisition is expected to close within three business days.”
Chinese approval may come as a relief to investors and analysts as questions had lingered whether Beijing was holding the deal hostage under larger trade disputes between U.S. and China. UTC leaders had said they did not believe trade tensions would hold up their deal. U.S. officials approved the acquisition Oct. 1 after mandating a couple of divestitures (Aerospace Daily, Oct. 2).
Next up, UTC is expected to reveal the results of a strategy review of their conglomerate that could result in a corporate breakup, including the potential formation of what could be the largest Tier 1 aerospace supplier and engine maker. Wall Street has been anticipating the review, which could be publicized before the end of the year.
“We would view a split of the business positively, although not with the degree of upside described by some activists,” Sanford C. Bernstein & Co. analyst Doug Bernstein said Nov. 23.