United Technologies (UTC) has reportedly shortlisted Lockheed Martin and Textron for the acquisition of its Sikorsky Aircraft business.

Reuters reported citing people familiar with the matter that final decision on this deal, which is expected to be valued at approximately $8bn, will be announced by the end of this month.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Sources also added the company may spin off Sikorsky to shareholders in a tax-free deal. In June, UTC announced it will pursue the separation of the Sikorsky Aircraft business following a review of strategic alternatives for Sikorsky.

"Sikorsky is the world’s premier helicopter company and through a series of strategic wins is well positioned for long-term growth."

UTC president Gregory Hayes said: "Sikorsky is the world’s premier helicopter company and through a series of strategic wins is well positioned for long-term growth.

"However, separation of Sikorsky from the portfolio will allow both United Technologies and Sikorsky to better focus on their core businesses."

Textron, the maker of Bell helicopters and Cessna aircraft, proposed a reverse morris trust (RMT) merger between Sikorsky and Textron, the news agency reported. Textron has a market capitalisation of approximately $12bn.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

After UTC rejected the proposal, Textron seeked help from private equity firms to support the acquisition.

Lockheed and Sikorsky are currently working together on several programmes for the US Navy and the US Marine Corps. The acquisition of Sikorsky will support Lockheed to achieve strong revenues in the medium term, according to the news agency.

Boeing also expressed interest in a potential deal to purchase the aircraft business.

UTC said the company, excluding Sikorsky, is expecting 2015 earnings per share of $6.35-$6.55 on sales of $58-$59bn.