..:: India Strategic ::. Defence Industry: United Technologies announces agreement to sell Sikorsky Aircraft

British Prime Minister David Cameron resigns | Theresa May takes over as new UK PM | May becomes second British woman PM after Margaret Thatcher | Cameron announced resignation following Brexit, a referendum for UK's exit from EU June 23 | International Tribunal demolishes China's claims over South China Sea | Permanent Court of Arbitration at The Hague says China has no legal basis to claim regional waters and build islets | The Tribunal also held China guilty of damaging coral reefs and natural environment | China has border maritime problems with all its neighbours | China rejected the decision, saying it is invalid and has no binding force | India, Tanzania agree to deepen overall defence and security partnership, especially in the maritime domain | Both nations agreed to work closely, bilaterally, regionally and globally to combat twin threats of terrorism, climate change | Prime Minister visiting Tanzania in the last leg of his visit to 4 African nations July 7-11 | Boeing, Mahindra Defence open C-17 Training Centre for IAF | Terrorism is the gravest security threat facing the world today, says PM Modi during Mozambique visit | Terrorism impacts India and Mozambique equally | NASA spacecraft Juno reaches Jupiter | Juno crossed violent radiation and flew 130,000 miles/hour | Jupiter is the largest planet in our solar system | Juno should be in Jpiter orbit for 20 months to send data | The $1.1 billion Juno mission took five years to reach Jupiter | LCA 'Tejas' joins Indian Air Force | Tejas is an indigenously-built Light Combat Aircraft | The single-seat, single-engine, multi-role light fighter is designed by ADA and manufactured by HAL | India test-fires new surface-to-air missile from a defence base in Balasore off Odisha coast | The new missile is jointly developed by India and Israel | Abdul Majeed Al Khoori appointed Acting CEO of the Abu Dhabi Airports | Eng. Mohamed Mubarak Al Mazrouei becomes Advisor to the Abu Dhabi Airports Chairman | Defence Minister Manohar Parrikar hands over 'Varunastra' to Indian Navy | Varunastra is an advanced heavyweight anti-submarine torpedo | It is indigenously designed, developed and manufactured by DRDO | India officially joins Missile Technology Control Regime | With this India becomes 35th member of the MTCR | Indian Foreign Secretary S Jaishankar signed the document of accession into MTCR in Seoul June 27 | The document was signed in presence of Ambassadors of France, the Netherlands and Luxembourg - the Chair and two co-chairs of the Regime | India had applied for the membership in 2015 | India finalises deal for 145 BAE Systems M777 artillery guns | This is Indian Army's first artillery deal in 30 years | Britain votes to leave EU, Pound crashes | 52 per cent voted Leave and 48 Remain in historic referendum | British Prime Minister David Cameron announces to resign before October over UK's exit | Leave process will take about two years though | Markets hit worldwide, including in India | China scuttles India's NSG bid | India joins SCO | India, apart from Pakistan, was admitted as full member of SCO during its Ufa Summit in July 2015 | After completing certain procedures, India now technically entered into SCO | India had an observer status for past 10 years prior to entering into six member regional bloc | No consensus on India's membership in NSG | China and five other countries oppose India's entry as New Delhi has not signed NPT | China insists Pakistan must also enter NSG if India's application is accepted | Pakistan is China's only military ally and is also known as a nuclear, missile and terror proliferator (NMTP) | Indian Space Agency ISRO successfully launches 20 satellites in one rocket | This is the biggest launch in ISRO's history | The satellites were launched onboard PSLV C-34 from SDSC (SHAR) Sriharikota | PSLV C-34 was carrying 17 satellites from US, Canada, Germany, Indonesia and 3 from India | Government of India approves 100% FDI in defence and civil aviation sectors | In defence, foreign investment beyond 49% (and up to 100%) permitted through the government approval route | This is in cases of access to modern technology in the country | For aviation, the government allowed 100% FDI in India-based airlines | The decision on FDI reforms taken at a high-level meeting chaired by Prime Minister Modi | India confident of getting into NSG, says External Affairs Minister Sushma Swaraj | India is working with China to win support | India will not oppose any country's membership proposal, EAM told a news conference |

Home

Editorial

United Technologies announces agreement to sell Sikorsky Aircraft
-Lockheed Martin to buy Sikorsky for $9 billion
-Net proceeds expected to fund additional share repurchase
-Transaction projected to close by year-end or in Q1 2016

Published: July 2015

Hartford, Conn. United Technologies Corp on July 20 announced that it has reached an agreement to sell its Sikorsky Aircraft business to Lockheed Martin Corp for $9 billion in cash.

The transaction, which is subject to regulatory approvals and customary closing conditions and adjustments, is projected to close by year-end or in the first quarter of 2016. Proceeds from the sale are expected to be used to fund additional share repurchase to offset the earnings impact related to the sale.

“We are very pleased to announce this transaction,” said UTC President and Chief Executive Officer Gregory Hayes. “Exiting the helicopter business will allow UTC to better focus on providing high-technology systems and services to the aerospace and building industries and to deliver improved and sustained value to our customers and shareowners.

“Sikorsky’s acquisition by Lockheed Martin, one of the world’s leading aerospace and defence companies, will ensure it remains a technology leader at the forefront of vertical lift,” Hayes added. “We are committed to working closely with Lockheed Martin to execute a seamless transition for customers and employees.”

The company will discuss this transaction at its previously scheduled conference call with investors and analysts at 8:30 a.m. EDT, Tuesday, July 21, following release of UTC’s quarterly financial results. A corresponding presentation will be available prior to the call on the company's website at http://www.utc.com.

In addition, UTC’s Board of Directors has authorised a share repurchase programme for up to 75 million shares of the company’s common stock, which would be worth approximately $8.3 billion based on the NYSE closing price of UTC shares on July 17. The new authorisation replaces a previous programme, approved in February 2013, which was nearing completion. The precise timing and amount of repurchases will be determined based on the company’s evaluation of market conditions and other factors, and the programme may be suspended or discontinued at any time.

JP Morgan Securities LLC is serving as UTC’s financial advisor, and Wachtell, Lipton, Rosen & Katz as its legal advisor for the sale.

United Technologies Corp, based in Hartford, Connecticut, provides high technology systems and services to the building and aerospace industries.