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United Technologies proposes remedies for Goodrich deal

 |  June 11, 2012

United Technologies has offered remedies to ease concerns the European Commission may have about its proposed acquisition of Goodrich. United Technologies manufactures high-tech products like helicopters and jet engines, and is a military contractor. Goodrich makes, among other products, aircraft landing gear and jet-turbine casings.

In March 2012, the European Commission opened a Phase II review of United Technology’s $18.4 billion bid. A preliminary investigation had 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.”

No further details on the concessions offered are available; the Commission is on track to reach a decision by August 31.


Full content: Bloomberg


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