July 6, 2012 / 9:51 AM / 7 years ago

United Tech, Goodrich deal set for EU approval

BRUSSELS (Reuters) - United Technologies Corp. (UTX.N) is set to win EU approval for its $16.5 billion purchase of U.S. aircraft components maker Goodrich GR.N after agreeing to sell assets in the United States and Britain, two people familiar with the matter said on Friday.

The acquisition is the largest in a decade for United Tech, whose products include Pratt & Whitney engines, Sikorsky helicopters and the Otis brand of elevators and escalators.

It would help the U.S. diversified conglomerate build up critical mass in new aircraft technology and plane services. Goodrich’s commercial plane programs include the Boeing 787 Dreamliner and the Airbus A320neo.

United Tech offered concessions to the European Commission last month after the EU regulator expressed worries about the combined companies’ very high market shares in engine controls and AC power generators.

“The Commission is expected to clear the deal conditionally. It is likely to make a decision before the summer break,” said one of the people, who asked not to be identified because of the sensitivity of the matter.

The person said that United Tech pledged to sell several Goodrich assets, including electrical power generation operations in the United States and Britain and its U.S. engine control activities.

The Commission, which closes in August for its summer recess, has set an August 31 deadline for its decision.

United Tech last month won Chinese regulatory clearance for the deal after it agreed to sell Goodrich’s electrical power generation and transmission systems businesses and 60 percent of a joint venture with Thales Avionics.

Goodrich supplies parts to several United Tech operations, including for Pratt & Whitney jet engines and its Hamilton Sundstrand’s aircraft electronics. United Tech competes with General Electric (GE.N) in several markets.

Reporting by Foo Yun Chee; editing by Rex Merrifield and Mike Nesbit

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