get link Over the past two days, Boeing’s (BA) share prices dropped a bit harder than the Dow Jones, where other defense peers, such as Lockheed Martin (LMT), Northrop Grumman (NOC) and Raytheon (RTN), were either in the green or just slightly red. The markets were said to be red due to continued tension with North Korea, domestic politics and Hurricane Irma. While one can say that Boeing has significantly outperformed the market and therefore would drop a bit harder on red days, I think this drop most likely is caused by a mega acquisition in the supply chain space. In this article, I want to have a brief look at the merger, why Boeing and Airbus (OTCPK:EADSF) are not happy about it and why I am not too worried.
here For a few days, there have been rumors that United Technologies (UTX) would be looking into acquiring Rockwell Collins (ROC). Yesterday the news broke that United Technologies had indeed acquired Rockwell Collins for a total sum of $30B including $7B of Rockwell’s debts. In this article, I don’t want to focus so much on the financial side of the acquisition, but rather on the implications for Boeing and Airbus and why these jet makers are far from happy with this acquisition.Discover More