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.
The deal price is likely to be worth approximately $20 billion or $140 per share or less, according to Business Insider citing a Wall Street Journal report.
Analysts say they donât 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 UTCâs 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.