Brendan McDermid | Reuters
The president and CEO of United Technologies, Greg Hayes, gives an interview to CNBC on the floor of the New York Stock Exchange, on September 5, 2017.
United Technologies announced late Monday that it intends to split into three companies: United Technologies, Otis and Carrier.
The other two companies will be the elevator manufacturer Otis and Carrier, which provides a series of products, including those related to HVAC and refrigeration.
United Technologies says it expects to end the separation in 2020.
President and CEO Gregory Hayes said in a statement that by dividing their businesses, each company will be better positioned.
"As independent companies, United Technologies, Otis and Carrier will be ready to solve our clients' biggest challenges, offer rewarding career opportunities and positively contribute to communities around the world," said Hayes.
United Technologies said Hayes will oversee the division and will remain in its role as president and CEO of United Technologies.
The industrial giant has scheduled a call for investors for Tuesday at 8 a.m. Eastern time.
United Technologies shares gained more than 2 percent in post-closing operations.
Investor activist Dan Loeb had pushed for United Technologies to split into three businesses. CNBC previously reported that the Loeb & # 39; s Third Point hedge fund had suggested in a letter dividing the company into an aerospace company, elevator company Otis and UTC Climate, Controls & Security. In that letter of April, the hedge fund also revealed a "significant stake" in United Technologies.
At that time, the company said it "does not agree with several of the statements contained in the Third Point letter" but "is always open to the entry of shareholders."
Last week, the industrial giant received China's key antitrust approval for its purchase of $ 23 billion from aircraft parts manufacturer Rockwell Collins. The agreement is the largest in aerospace history. The combined companies generated almost $ 67 billion in revenue last year.
United Technologies also updated its financial perspective to include its acquisition of Rockwell Collins. The company said it now expects sales in 2018 between $ 64.5 billion and $ 65 billion, above its previous range of $ 64 billion to $ 64.5 billion.
This story is developing. Please check the updates.