Honeywell International Inc’s proposal to buy rival United Technologies Corp would create an industrial giant bigger than aircraft makers Boeing Co or Airbus Group, potentially changing the balance of power between manufacturer and supplier, Reuters reported. Pricing power is a key concern of the big aircraft makers, and it is a central issue in the battle between United Technologies and Honeywell. United Technologies on Friday rejected Honeywell’s $90.7 billion offer, citing customer concerns among other big issues. With nearly $100 billion in annual sales and significant combined market share for such key aircraft components as wheels, brakes, power units, ventilation systems, electronics and small engines, a combined Honeywell/United Technologies would have the heft to fight price-cutting demands from customers, industry experts said. Boeing and Airbus have encouraged small and mid-sized suppliers to merge, so they would have more financial and management depth to serve the plane makers as they ramp up production over the next several years.
