On 4 May 2018, the European Commission approved, under the EU merger regulation, the acquisition of Rockwell Collins Incorporated by United Technologies Corporation(UTC). Both companies are based in the US and are active in the aerospace sector.

In particular, Rockwell Collinsis a manufacturer and supplier of aviation and integrated solutions for both commercial and government applications. It also manufactures and supplies a variety of aircraft cabin interior products. UTC provides high technology products and services for the building systems and aerospace industries worldwide. The UTC group comprises the following major business units: Otis Elevator Company,UTC Climate, Controls & Security, Pratt & Whitney, and UTC Aerospace Systems(UTAS).

The proposed concentration was notified to the Commission on 12 March 2018. Following its investigation, the Commission found that the transaction, as originally notified, would have reduced competition in the markets for trimmable horizontal stabiliser actuators (THSAs), certain pilot controls (throttle quadrant assemblies and rudder brake pedal systems), pneumatic wing ice protection and oxygen systems.

To address the Commission’s concerns, UTC offered to divest Rockwell Collins‘ entire global THSA and pilot control businesses, as well as Rockwell Collins‘ entire global business in ice protection. UTC also offered to divest its two research projects in oxygen systems.

According to the Commission, the proposed commitments fully remove the identified obstacles to competition. Therefore, the proposed transaction, as modified by the commitments, would no longer raise competition concerns in the European Economic Area (EEA). The decision is conditional upon full compliance with the commitments.

Davide Scavuzzo