According to Reuters, the UK competition watchdog announced on Friday that Safran has proposed specific measures, including selling parts of its operations, to address competition concerns stemming from its planned purchase of a segment of Collins Aerospace’s business. This move could potentially ease regulatory hurdles in the acquisition process.
The Competition and Markets Authority (CMA) revealed that Safran has committed to significantly divesting its operations involved in the design and manufacture of Trimmable Horizontal Stabilizer Actuator systems. This step is intended to alleviate any competitive issues arising from the deal.
The CMA mentioned that they will now delve deeper into Safran’s proposed commitments, including sourcing feedback from third parties. Should everything be in order, this could lead to the approval of the transaction.
In a related report earlier this week, Reuters, drawing on insights from individuals familiar with the situation, noted the European Union’s antitrust authorities are leaning towards greenlighting Safran’s $1.8 billion acquisition bid for Collins Aerospace’s flight control systems division.
Back in 2023, Safran entered into an agreement to acquire this essential supplier of cockpit functionalities from Collins Aerospace.
The coverage was provided by Aby Jose Koilparambil in Bengaluru, with the piece edited by Eileen Soreng and Rashmi Aich.
