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Image header Agence Europe
Europe Daily Bulletin No. 10665
ECONOMY - FINANCE - BUSINESS / (ae) competition

Commission authorises UTC/Goodrich merger

Brussels, 27/07/2012 (Agence Europe) - On 26 July, following an in-depth investigation (EUROPE 10583), the European Commission cleared the proposed acquisition of Goodrich Corporation by United Technologies Corporation (UTC), both US-based companies active in the production and sale of aviation equipment on a worldwide basis. The Commission agreed to the commitments taken by UTC to calm fears regarding possible competition problems resulting from market operation of airconditioning generators and engine controls for small engines, a market where the company enjoys significant market share. The investigation also revealed potential problems for Pratt&Whitney's (UPC subsidiary) rival engine manufacturers, such as Williams and Honeywell, which are supplied by Goodrich for their aircraft engines and Rolls-Royce, which is collaboratng with Goodrich to develop a new lean burn fuel nozzle, which will be used on future environmentally responsible gas turbine aircraft engines. With regard to the first case, the Commission was concerned that the merged company would exploit its new supply relations to the benefit of Pratt & Whitney and, in the second case, that the deal would remove the incentives for Goodrich to complete the new project with Rolls-Royce. In an effort to appease these concerns, UTC agreed to: - divest Goodrich's businesses in aircraft electrical power generation and distribution systems, divest Goodrich's business in engine controls for small aircraft engines, and offer Rolls-Royce an option to acquire Goodrich's lean burn fuel nozzle R&D project. The Commission concluded that these commitments meet its concerns and the merged entity would continue to face competition from a number of strong competitors and customers would still have sufficient alternative suppliers. (FG/trans/fl)

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