UK Considers Safran’s Fixes for Collins Takeover

The UK’s Competition and Markets Authority (CMA) announced on Friday that remedies proposed by French aerospace company Safran may be sufficient to resolve competition concerns tied to its planned acquisition of a portion of Collins Aerospace’s operations.

According to Reuters, the remedies include Safran’s commitment to divest nearly all of its operations involved in the design and production of Trimmable Horizontal Stabilizer Actuator (THSA) systems — components critical to an aircraft’s stability and flight control.

The CMA stated it would now conduct a more in-depth evaluation of the proposed undertakings, which will involve soliciting input from third parties. Should the regulator determine the remedies adequately address its concerns, it indicated the deal would be approved.

Related: Safran Poised to Secure EU Antitrust Approval for Collins Aerospace Deal

Safran, a key supplier in the global aerospace industry, entered into an agreement last year to acquire the flight controls division of Collins Aerospace, a unit of RTX (formerly Raytheon Technologies), in a transaction valued at $1.8 billion.

Per Reuters, European Union competition authorities are also expected to give their approval to the deal soon, following an independent assessment. Sources cited by Reuters earlier this week said that EU regulators are prepared to greenlight the acquisition after reviewing the competitive landscape and proposed commitments.

The CMA’s review plays a critical role in determining whether the deal can proceed within the UK market, where both companies have substantial aerospace operations.

Source: Yahoo