Thread regarding Honeywell International Inc. layoffs

If these mergers keep happening at the "big boys" then think about what happens if you are a OEM aircraft manufacturer. You may have gotten screwed by a Honeywell or GE for some system or component, so you went to RC, for a hypothetical example. So you had some choices. If this trend is allowed to continue, let the bttfckin begin! Nowhere to turn except foreign, but they're going through acquisitions, too.

@1xsv

Yea, think about what you are saying. If the regulators allow this monopolistic move to go through, then what WOULD stop a future (or already pending) merger of GE & Honeywell? You know the Drumpf administration will be "business friendly" so get it, while the gettin' is good.

By the way, every time they allow more mergers while talking about a "free market" and "competition" is the mantra of all that is good for America, they are being hypocrites, as usual.

In the end, who loses is American consumers & taxpayers who will pay more due to lack of competition, especially in the gov't services & defense spending. Not to mention the employment sector which will have fewer options.

Bbbbut...."business friendly"...ha!

It's OK. Honeywell treats its employees so well that a formidable competitor is of no concern to management. A little sarcasm to entertain to people who do the real work.

Per WSJ front page article today, Sept. 5, RC sales are $5.3B, but they just bought B/E Aerospace for another $2.9B in sales at 2X sales. So, they are paying $23B for $8.2B in sales, or a little over 3X and about 20% over RC stock price at time of announcement. Not trying to say this is smart, but the numbers are pretty typical and if I recall correctly, UTC's stock went up, not down, when the deal was announced. What does surprise me is no EU anti-trust objection reported so far. This UTC structure creates exactly the product spread that shot down GE's takeover of Hon and maybe more so. Propulsion engines, APU, c---pit avionics, landing gear, etc., and even seats!

They are banking on Honeywell fading out and no longer being competition.

Not necessarily. A business is usually valued between 2-6 times its revenue in determining sale price. The multiplier is based on perceived health, potential for future growth, etc. It's a touch on the high side, but clearly UTC thinks it's worth it in the long run.

Let's see how this one plays out. I am not getting numbers though. They are paying 20+ billion for 5 billion in sales. Does this make sense to you guys?

Where am I off here? For me - this sounds way overpriced....