* 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
* 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
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
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