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Phase II review of United Technology’s proposed acquisition of Goodrich

By  |  March 27, 2012

The European Commission has opened a Phase II review of United Technology’s $18.4 billion proposed acquisition of control over Goodrich. Both companies are involved in the production and sale of aviation equipment. 

A preliminary investigation revealed that the acquisition would lead to very high market shares for AC power generators and a concentrated market structure at a worldwide level for engine controls. Furthermore, the deal would create vertical relationships, as it would remove Goodrich as an independent supplier of fuel nozzles and engine controls, and its aftermarket services. Commission Vice President for competition policy Joaquín Almunia notes that concerns are heightened by the fact that the “aviation equipment industry is already concentrated and is characterised by high barriers to entry.”

The Commission will make a final decision on the deal by August 9, 2012.

Full content: EC Press Release


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