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EU Puts Conditions on Approving United Technologies' Goodrich Bid

July 26, 2012

U.S. conglomerate United Technologies Corporation (UTC) should be allowed to take over aerospace company Goodrich Corporation - but only if it sells some units of that firm to the competition, European Union antitrust regulators said Thursday.

UTC should sell Goodrich's businesses in eletrical power generation and in controls for small aircraft engines, the European Commission said in a statement.

It should also offer rival firm Rolls Royce an option to take over a research project into technology to reduce fuel consumption in airline gas turbine engines, which Goodrich was developing on its behalf, the commission ruled.

Such remedies "ensure that competition and incentives to innovate remain strong in these high-technology markets," EU Competition Commissioner Joaquin Almunia said.

The commission, the EU's executive arm, had opened an antitrust investigation on the proposed $16.5-billion (20.3-billion-euro) deal in late March.

UTC's subsidiaries include engine maker Pratt & Whitney and the helicopter manufacturer Sikorsky. The company also produces lifts, and fire and security technology.

Goodrich supplies systems and services to the aviation and defence firms, including to Pratt & Whitney competitors such as Rolls Royce and Honeywell.

Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH

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