United Technologies Corp. is nearing a deal to buy Rockwell Collins Inc. for more than $20 billion, a tie-up that would create one of the world’s biggest aircraft-equipment makers.

The companies are discussing a per-share price for Rockwell of $140 or less and could come to an agreement as soon as this weekend, according to people familiar with the situation.

Rockwell shares rose on the news, first reported by The Wall Street Journal Tuesday, closing up 2.1% at $130.74 and giving the company a market value of about $21 billion. United Technologies, meanwhile, jumped 2.9% to $118.70, giving the industrial conglomerate a market value of about $95 billion. United Technologies investors cheered the likelihood that the company will be able to secure the deal without paying a higher price that some had expected.

As with all acquisition talks, it’s possible these could hit a snag and not result in a deal, or the expected price could change.

Should the transaction happen, it would rank as the largest aerospace deal on record, eclipsing United Technologies’ 2012 acquisition of Goodrich Corp. for about $16.5 billion, according to Dealogic. It would also be one of the five-biggest takeovers of the year, Dealogic data show.