Safran Poised to Secure EU Antitrust Approval for Collins Aerospace Deal

French aerospace giant Safran is on track to receive conditional approval from European Union antitrust regulators for its proposed $1.8 billion acquisition of Collins Aerospace’s flight controls business, according to sources familiar with the matter.

Per Reuters, the European Commission’s approval hinges on Safran’s agreement to divest its electromechanical actuation business in North America. The decision aims to address potential competition concerns in the sector. The Commission is expected to conclude its preliminary review by Friday.

Safran, which first announced the deal in July 2023, has stated that the acquisition is a strategic move to position itself for the next generation of increasingly computerized aircraft. This would mark the company’s largest acquisition since its 2018 purchase of seat manufacturer Zodiac.

Related: UK Authority Probes Safran-Collins Aerospace Deal

To satisfy regulatory requirements, Safran agreed in December to sell its electromechanical actuation unit—including its intellectual property, operational assets, workforce, and customer contracts related to horizontal stabilizer trim actuation systems—to U.S. aircraft parts supplier Woodward.

According to Reuters, actuators play a critical role in aircraft operations by converting electronic cockpit instructions into physical movements, such as adjusting flight surfaces to enhance lift during landing. The European Commission and Safran have both declined to comment on the pending approval.

Source: Reuters