The race to acquire Sikorsky Aircraft business has ended with two finalists. Textron Inc or Lockheed Martin Corp will acquire United Technologies Corp’s aviation wing. The analysts say the deal would cost $8 billion dollar if finalized. By the end of the month, UTC will release its evaluation of offers by two corporations and go ahead with the best one. The people close to the development said the company may announce a sudden sell off to boost the shareholders of the group. The news of UTC selling its helicopter making arms broke last month and since then there have been speculations about the future owner of Sikorsky Aircraft business.
The company was under pressure from the commercial segment as demands are all time low due to lower fossil fuel prices. The oil and gas sector is struggling too. With market capitalization of around $12 billion the Textron is going against larger fish in the business. The company has tried to contact all private equity firms to negotiate cash bid to merge with Sikorsky. The giant Lockheed Martin has massive market capital of $60 billion. The Textron tried to buy UTC subunit through Reverse Morris Trust. The transaction would have saved large amount of money for Bell helicopters and Cessna aircraft maker.
The more complex offer would be implemented now. Textron stake won’t be bought by UTC. The much bigger player Boeing Corporation is not that active in the bidding process anymore. Some press reports said Airbus Group is closely watching the deal too.