United States. 
Honeywell said it is no longer pursuing a strategic combination with United Technologies after scrapping its latest offer of about $90 billion.
In a statement, Honeywell President and CEO Dave Cote revealed that his company has been discussing potential mergers for the past 15 years, but is no longer pursuing a strategic combination with United Technologies due to its unwillingness to enter into negotiations.
"Both from the point of view of industrial logic and shareholder value, Honeywell and United Technologies are a great match and that's why the two companies have been talking about a combination for more than 15 years," he said.
Honeywell said it was interested in a combination as it saw attractive value creation for both groups of shareholders and an easily enforceable transaction due to two largely complementary business portfolios.
Honeywell again insisted that it was confident that the regulatory process – UTC's main objection – would not have presented a major obstacle to a transaction.
"We made a full and fair offer that would have greatly benefited both groups of shareholders. Considerable value would have been added through Honeywell's $3.5 billion of highly affordable costs of synergies and the application of Management Practices, especially our extensive software and cost management capabilities that would support the product's reinvestment needs. It would also have created the opportunity to build an excellent core growth portfolio," Cote added. "However, continuing to attempt a negotiation with an unwilling partner is incompatible with our disciplined acquisition process."
In response to Honeywell's comments, UTC said it would remain focused on its key priorities – program execution, innovation, cost reduction and disciplined capital allocation. "Our outlook remains strong and our industry-leading franchisees are well positioned to generate solid earnings growth and create shareholder value going forward," the company said in a statement.
