United Technologies offers concessions to EU for $16.5-bn Goodrich acquisition

11 Jun 2012

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United Technologies Corp (UTC), the $54-billion aerospace and defence contractor and maker of the UH-60 Black Hawk helicopter, has offered concessions to the European Union regulators in order to get approval for its proposed $16.5-billion takeover of rival Goodrich Corp.

The Connecticut-based company has offered to sell assets in order to allay possible antitrust concerns over the deal, the European Commission (EC) today said in a filing on its website.

With an eye on surging global sales orders for commercial planes, in September 2011, UTC proposed to acquire Goodrich, a global supplier of systems and services to aircraft and engine manufacturers, airlines and defense forces.

The EC has been reviewing UTC's biggest deal and has set 31 August as the deadline for its decision after consulting close rivals and customers of both companies.

The EC is concerned that the deal will create a company holding a large chunk of the market share in engine controls and AC power generators, as well as fuel nozzles and engine controls.

The EC as well as UTC did not reveal what concessions have been offered, but UTC, which also owns the Otis brand of elevators and escalators, had earlier said that it would to sell its Rocketdyne space unit, Clipper Windpower and  pump and compressor-making units of  Hamilton Sundstrand aircraft components division in order to fund the acquisition.

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