The European Union's antitrust watchdog Thursday approved United Technology Corp.'s (IW 500/24) $18.4-billion bid to take over Goodrich Corp. (IW 500/125), both U.S. aerospace firms, but set conditions.
A European Commission statement said approval was "conditional upon the divestment of Goodrich's businesses in electrical power generation (AC) and in engine controls for small engines."
"It is also subject to Rolls Royce (IW 1000/229) being granted an option to acquire Goodrich's lean burn fuel nozzle R&D project."
The statement followed a commission probe over potential competition concerns in the markets for engine controls and power generators.
Under the deal, UTC, maker of Pratt & Whitney aircraft engines and Sikorsky helicopters, would acquire a major global supplier of systems and services to aerospace, defense and homeland security markets.
"The aviation equipment industry is already concentrated and is characterized by high barriers to entry," said EU Competition Commissioner Joaquin Almunia in March.
"We need to make sure that competition is preserved and incentives to innovate remain. We must also prevent a rise in input prices for aircraft and engine manufacturers as well as other aviation equipment suppliers."
Copyright Agence France-Presse, 2012