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28
jul

EC approves UTC-Goodrich acquisition

The European Commission (EC) has approved United Technologies Corp.’s (UTC) proposed acquisition of Goodrich, but only if it sells some units, European Union antitrust regulators said Thursday
The regulatory clearances require that UTC sell Goodrich’s Electric Power Systems business and Goodrich’s Connecticut-based Pumps and Engine Controls business, according to an EC statement. UTC will also sell Goodrich’s interest in Aero Engine Controls (AEC), a joint venture with Rolls-Royce (RR). It should also offer RR an option to take over a technology research project to reduce fuel consumption in engines, which Goodrich was developing on its behalf, the commission ruled.

The AEC aftermarket business, which was also a point of EC’s in-depth investigation, will remain with UTC, but RR will be able to purchase this aftermarket business in the future.

Such remedies “ensure that competition and incentives to innovate remain strong in these high-technology markets,” said EC, which opened an antitrust investigation on the proposed $16 billion deal in late March .

The EC concluded the merger would continue to face competition from a number of strong competitors and customers would still have sufficient alternative suppliers.
source: ATW July 27, 2012