* Offers to sell assets to win $16.5 bln deal approval
* EU regulators market testing proposal
* EU Commission to decide on deal by Aug. 31
* Regulatory concerns about engine control, power systems markets
* United Tech still expects to close deal in July
By Foo Yun Chee
BRUSSELS, June 11 U.S. group United Technologies Corp has offered to sell assets to secure EU approval for its $16.5 billion takeover of U.S. aircraft components maker Goodrich, its largest deal in a decade, two people familiar with the matter said.
The European Commission, which has been examining the deal with which United Tech aims to build critical mass in new aircraft technology and plane services as civil aviation demand recovers, said on its website on Monday it had received the offer.
United Tech, whose products include Pratt & Whitney engines and Sikorsky helicopters, has proposed divestments, said the sources, who declined to provide details because of the sensitivity of the matter.
The Commission has set an Aug. 31 deadline for a decision on the deal and has already asked for feedback from rivals and customers of Goodrich and United Tech, one of the sources said.
United Tech said it still expected to close the deal next month. "All regulatory filings are on track and we continue to anticipate timing of close in line with what we have previously communicated. Beyond that we cannot comment on the details of the regulatory review," spokesman John Moran said.
United Tech chief executive Louis Chenevert told investors last month he was confident the Goodrich deal would close mid to late July, despite the EU review.
Goodrich, which was not available to comment, supplies parts to several United Tech operations, including for Pratt & Whitney jet engines and its Hamilton Sundstrand's aircraft electronics. Its commercial plane programmes include the Boeing 787 Dreamliner and the Airbus A320neo.
United Tech, also a leading maker of air conditioners and owns the Otis brand of elevators and escalators, has said it aimed to sell three smaller businesses - its Rocketdyne space unit, Clipper Windpower and some industrial units at the Hamilton Sundstrand aircraft components operation - to fund the Goodrich purchase.
EU regulators opened an investigation into the deal in March after an initial assessment showed competition concerns in the markets for engine controls and AC power generators, because of the combined group's high market share.
The EU competition authorities also expressed concern about the loss of Goodrich as an independent supplier of fuel nozzles and engine controls, and as a player in aftermarket services.
Goodrich last week sold its share of an engine controls joint venture to Rolls-Royce, a deal which the British enginemaker had agreed with United Tech.
United Tech competes with General Electric in several markets.