United Technologies Corp. (NYSE: UTX) is close to finalizing an agreement to buy Cedar Rapids, Iowa-based avionics contractor Rockwell Collins (NYSE: COL) as the industrial conglomerate aims to expand its aerospace business, Reuters reported Tuesday.
A source familiar with the negotiations told Reuters the companies are close to reaching an agreement on the acquisition price and could unveil the transaction as soon as next week.
Analysts say they don’t expect the potential acquisition to face significant antitrust issues since both firms manufacture different aircraft components, Business Insider added.
Shares in Rockwell Collins rose 2.15 percent and UTC’s shares climbed 2.92 percent in after-hours trading.
Updates on the potential deal came weeks after reports said UTC was exploring a potential transaction to acquire Rockwell Collins.