Bloomberg reported that US-based jet engine maker United Technologies is exploring a potential purchase of aircraft component manufacturer Rockwell Collins.

Citing people familiar with the matter, the publication reported that there is no certainty if the talks will lead to a deal or if the firms are currently holding talks.

Rockwell Collins currently has a market value of $19.3bn and if the deal materialises, it would be bigger than United Technologies’ $18bn acquisition of Goodrich in 2012. United Technologies has a market capitalisation of almost $97bn.

The deal will enable both United Technologies and Rockwell Collins to gain a greater position in the market as plane manufacturers such as Boeing and Airbus are seeking increased price reductions from suppliers.  

Rockwell Collins is currently engaged in the production of avionics parts for commercial and military aircraft, while United Technologies specialises in components such as aircraft engines, structures, cockpit and cabin controls, as well as ventilation systems.

"The deal will enable both United Technologies and Rockwell Collins to gain a greater position in the market."

United Technologies’ Pratt & Whitney engine unit experienced production issues with its new Geared Turbofan engine. During the latest quarter, the company stated that it had solved the supply chain issues which subsequently led to the delay in the launch of Airbus new A320neo aircraft.

In April, Rockwell Collins bought aircraft seats and lavatory manufacturer B/E Aerospace in a $8.6bn deal.

The company has also agreed to provide FOMAX aircraft data networking services on all new Airbus A320 aircraft from next year.

The deal with United Technologies will help Rockwell Collins to offer ‘connected aircraft’ solution that can transmit data on routes, onboard systems and weather, thereby enabling airlines to improve their operations.

Image: Rockwell Collins Interior Systems employee building airline cabin seats. Photo: courtesy of Rockwell Collins.