United Technologies Corporation (NYSE: UTX) on Monday announced to buy aircraft parts manufacturer Rockwell Collins, Inc. (NYSE: COL) for $30 billion.

Under the deal, United Technologies will pay $140 per share in cash and stock for Rockwell shareholders. The price represents an 18 percent premium to Rockwell Collins’s closing price at August 4. United Technologies said it will fund the cash part with about $14 new debt.

"This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems," UTC's chairman and chief executive officer, Greg Hayes, said in the statement. "Together, Rockwell Collins and UTC Aerospace Systems will enhance customer value in a rapidly evolving aerospace industry by making aircraft more intelligent and more connected,"

The deal will create a one of the largest aircraft components markers in the world. This is also one of the biggest deals in the aviation history.

The deal is expected to be closed at the third quarter of next year. United Technologies expects that the acquisition will generate more than $500 million savings by the fourth year after the deal is closed.

Investors’ reactions to the deal are mixed. United Technologies’ shares are trading over 4 percent down in the early trading on Tuesday, while Rockwell Collins rose 0.74 percent to $131.56.

United Technologies said the combined segment will be named Collins Aerospace Systems.