Safran Secures EU Approval for $1.8 Billion Collins Aerospace Deal

French aerospace manufacturer Safran has received approval from European Union antitrust authorities to proceed with its $1.8 billion acquisition of Collins Aerospace’s flight controls business, according to Reuters.

Originally announced in 2023, the deal marks Safran’s largest acquisition since its purchase of Zodiac Aerospace in 2018. The move is intended to bolster Safran’s capabilities in developing flight control systems for the next generation of highly digitalized aircraft, supporting both civil and military aviation sectors.

The green light from the European Commission follows Safran’s commitment to divest a key business unit to address competition concerns. Specifically, the company agreed to sell its North American operations related to trimmable horizontal stabiliser actuator (THSA) systems—equipment crucial for adjusting aircraft pitch during flight.

Related: UK Authority Probes Safran-Collins Aerospace Deal

Per Reuters, the European Commission highlighted that without the divestment, the transaction could have negatively impacted competition in THSA markets, potentially leading to higher prices or limited supplier options for aircraft manufacturers.

“To address the Commission’s competition concerns, Safran offered to divest the entirety of its North American THSA business, which includes sites in Canada and in the United States, as well as assets in Mexico,” the EU regulator said in a public statement.

The proposed buyer of the divested assets, U.S.-based aerospace company Woodward, will undergo a separate antitrust review by the European Commission, Reuters reported. Woodward reached an agreement with Safran to acquire the THSA operations in December 2024.

Source: Reuters