Following rejection of its offer, Honeywell decided to stop effort to acquire United Technologies, its rival company. United Technologies refused the offer because of concern regarding regulatory delay.

Last week, Honeywell placed an offer of $90.7 billion to buy its rival company United Technologies. United Technologies refused the offer because the company is assured regulators were unlikely to approve the deal.

CNBC reported United Technologies predicted an antitrust isssue will become the roadblock for the mergers which aimed to achieve cost saving. Honeywell have also experienced the antitrust problem when General Electric tried to acquire the company in 2001. At that time, European Commission blocked the acquisition plan in fear of monopoly in jet engine market by GE.

Honeywell has been trying to unite its airplane parts unit with United Technologies in 2011 and 2015, as CNBC reported. Furthermore, the conversation to unite both company has been taking longer, as CEO David Cote said, "From both an industrial logic and shareholder value perspective, Honeywell and United Technologies are a great match and that is why the two companies have been talking about a combination for more than 15 years."

Honeywell disagreed with regulatory issue and customer risks associated with a deal. In a news release cited by Wall Street Journal, CEO David Cote said, "We remain confident that the regulatory process would not have presented a material obstacle to a transaction." However the company said, "continuing to try to negotiate with an unwilling partner is inconsistent with our disciplined acquisition process."

David Cote was taking over Honeywell helm in 2002, when the company was facing the disastrous mergers-and-acquisitions side effect. The former CEO of GE Appliances was trying to steer the company out of the crisis Under his leadership, Cote was able to unite the company, made 80 acquisition, 60 divestment and book $12 billion new sales.

Honeywell was founded in 1906 by Mark Honeywell, the inventor of mercury seal generator. The company is specialized in creating a heating equipment and thermostat. From the small beginning in New Jersey, Honeywell grew to become an American multinational giant producing variety of product from consumer products to aerospace equipments.

While United Technologies can be traced back from William Boeing's holding company United Aircraft and Transport Corporation. In 1934, U.S. government found the company had grown too big, and based on the newly regulated antitrust law, decided to break the company into three separated companies: Boeing, United Airlines and United Aircraft Corporation. In 1975, United Aircraft Corporation was renamed into United Technologies.

Although both Honeywell and United Technologies can become more efficient by mergers, but there is always a possibility of regulatory issue that United Technologies try to avoid by rejecting the offer. As a result, Honeywell decided to ditch its offer.