Reuters: Regulatory News: UPDATE 1-United Tech offers concessions for Goodrich buy - source

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UPDATE 1-United Tech offers concessions for Goodrich buy - source Jun 11th 2012, 11:27 Mon Jun 11, 2012 7:27am EDT * Offers to sell assets to win $16.5 bln deal approval * EU regulators expected to market test proposal * EU Commission to decide on deal by Aug. 31 * Regulatory concerns about engine control, power systems markets * United Tech owns Pratt & Whitney, Sikorsky brands By Foo Yun Chee BRUSSELS, June 11 (Reuters) - U.S. conglomerate United Technologies Corp has offered to sell assets to secure EU regulatory approval for its $16.5 billion takeover of U.S. aircraft components maker Goodrich, a person familiar with the matter said. The European Commission has been examining the deal, UTC's biggest in a decade and with which it aims to build critical mass in new aircraft technology and plane services as civil aviation demand recovers. UTC, whose products include Pratt & Whitney engines and Sikorsky helicopters and which is a top player in aircraft landing gear, has proposed divestments, said the source, who declined to provide detail because of the sensitivity of the matter. The EC, which has set an Aug. 31 deadline for a decision on the deal, was expected to market test the proposed concessions with rivals and customers of UTC and Goodrich. UTC, Goodrich and the European Commission could not be reached for comment. Goodrich supplies parts to several UTC operations, including for Pratt & Whitney jet engines and its Hamilton Sundstrand's aircraft electronics. Its commercial plane programmes include the Boeing 787 Dreamliner and the Airbus A320neo. UTC, is also a leading maker of air conditioners and which owns the Otis brand of elevators and escalators, has said it aimed to sell three smaller businesses - its Rocketdyne space unit, Clipper Windpower and some industrial units at the Hamilton Sundstrand aircraft components operation - to fund the Goodrich purchase. EU regulators opened an investigation into the deal in March after an initial assessment showed competition concerns in the markets for engine controls and AC power generators, because of the combined group's high market share. The EU competition authorities also expressed concern about the loss of Goodrich as an independent supplier of fuel nozzles and engine controls, and as a player in aftermarket services. Goodrich last week sold its share of an engine controls joint venture to Rolls-Royce, a deal which the British aero engine maker had agreed with United Tech. UTC competes with General Electric in several markets. Link this Share this Digg this Email Reprints

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