United Tech wins conditional EU okay for Goodrich buy
BRUSSELS, July 26
BRUSSELS, July 26 (Reuters) - U.S. conglomerate United Technologies Corp secured EU regulatory approval on Thursday for its $16.5 billion takeover of aircraft components maker Goodrich, on condition that its sells some power generation and engine controls operations.
The acquisition, United Tech's biggest in a decade, will boost its critical mass in new aircraft technology and plane services. Goodrich's commercial plane programmes include the Boeing 787 Dreamliner and the Airbus A320neo.
The European Commission said in a statement that the group will have to sell Goodrich's businesses in electrical power generation and in controls for small engines.
The Commission, which acts as competition regulator in the 27-member European Union, also made its approval conditional on Rolls-Royce being granted an option to acquire Goodrich's lean burn fuel nozzle research and development project.
It said in a statement that the agreed conditions addressed its concerns that the merged group would otherwise have had too much clout in the relevant markets.
"The remedies ensure that competition and incentives to innovate remain strong in these high-technology markets, for the ultimate benefit of the aerospace industry customers," EU Competition Commissioner Joaquin Almunia said in the statement.
"In this case concerning a major transaction affecting markets on both sides of the Atlantic, we worked in close and very effective cooperation with the U.S. and Canadian competition authorities."
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