UTX United Technologies Corporation

Honeywell Inc. recently approached rival United Technologies Inc. about a combination of the industrial giants but was rebuffed amid concerns such a transaction wouldn't pass antitrust muster, according to people familiar with the matter.

The proposed transaction would combine conglomerates, which are each worth more than $70 billion, that make everything from elevators and thermostats to jet engines and landing gear. But given the overlap between their business units, especially in aerospace, such a transaction would face steep regulatory hurdles. The two companies together employ more than 300,000 people.

Exploratory talks have been occurring on-and-off for roughly a year, according to one of the people, but the two rivals have been unable to agree on key aspects of any proposal, including how viable a combination would be and who would run the merged entity. United Technologies believes there is little to no chance that a deal would be approved by antitrust regulators, according to this person.

News of the talks was earlier reported by CNBC. Shares of Honeywell, which had risen 2.5% over the past year through Friday, fell 2% in Monday afternoon trading. Shares of United Technologies, which had fallen about 28% over the past year through Friday, rose 5% in afternoon trading.

(END) Dow Jones Newswires

February 22, 2016 16:05 ET (21:05 GMT)

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