What happened

Shares of airplane-parts manufacturer Rockwell Collins (COL) are surging today, up 9.2% as of 2 p.m. EST, on news that the Chinese government has given its conditional approval to Rockwell's acquisition by United Technologies Corp. (RTX -0.76%) in a $30 billion merger.

So what

Rockwell Collins and UTC have been trying to get this deal done since it was first announced more than a year ago, in September 2017. (In fact, the companies may have been trying to make this happen for even longer than that). European antimonopoly regulators approved the purchase back in May; American regulators signed off last month.

That made China the last one standing (in the way of this merger), and with President Trump's trade war against China in full swing, there was no guarantee that this deal would ever get done. And yet, it now appears it will get done. This morning, UTC announced that with China's State Administration for Market Regulation giving the green light, it has obtained the "final regulatory approval" needed for its purchase of Rockwell Collins.

Wall painting of large fish chasing a smaller fish

It looks like UTC is finally going to catch that $30 billion guppy it's been chasing. Image source: Getty Images.

Now what

United Technologies Corp. hopes to close this transaction "within three business days." At that time, Rockwell Collins shareholders should expect to be paid $93.33 in cash, and a further $46.67 in UTC stock, for each Rockwell Collins share they own. This is subject to some modifications involving the value of UTC stock over the "20 consecutive trading days ending immediately prior to the closing date," a "two-way 7.5% collar" and other details -- all of which probably explains why Rockwell Collins stock shot up not just to the published "$140 a share" buyout price, but even a bit past it.