The Department of Justice will require United Technologies Corporation (UTC) to divest assets it would otherwise acquire in its takeover of Goodrich Corporation. Concerned that the largest aircraft industry merger in history would result in higher prices, less-favorable contracts, and less innovation for critical aircraft components, the DOJ filed a civil antitrust suit to block the proposed deal, and issued a settlement proposal to resolve anticompetitive concerns.
Both UTC and Goodrich specialize in engine generators, aircraft turbine engines and engine control systems for large aircraft turbine engines, and the DOJ complaint alleges that the merger would combine “the only two significant suppliers of large main engine generators for aircraft in the world.”
The proposed settlement includes divestiture of Goodrich’s business that “designs, develops and manufactures large main engine generators,” engine control systems, and Goodrich’s shares in joint venture Aero Engine Controls. It also extends Rolls-Royce’s option to acquire the Goodrich aftermarket business, based on its prior joint venture with UTC.
The DOJ coordinated with a number of antitrust agencies across the world that were also investigating this deal including the European Commission and the Canadian Competition Bureau and the Federal Competition Commission in Mexico and the Administrative Council for Economic Defense in Brazil.
Full content: Justice
Related content: Reinvigorating Horizontal Merger Enforcement
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI