Wednesday, March 28, 2012
EU balks over merger
The European Commission is taking a closer look at the proposed $16.5 billion merger between United Technologies and Goodrich. One of the concerns is the high market share of a combined UT/Goodrich in areas such as engine controls and power generators, where UT's Hamilton Sundstrand unit and Goodrich are competitors. UT unveiled the takeover in September last year, which would reinforce its presence in the civilian aerospace market. Goodrich parts are used on the Boeing 787 Dreamliner and Airbus' A320neo. The probe, which could last until August, may lead to the sale of assets to get approval for the deal. Hartford, Conn.-based UT's aviation activities include Sikorsky and Pratt and Whitney. It makes an array of products, including rocket engines, helicopters and elevators. Charlotte, N.C.-based Goodrich makes aircraft equipment including landing gears and electrical power systems. (Sources: Reuters, Bloomberg, 03/27/12) Previous. Gulf Coast note: UT's Pratt and Whitney Rocketdyne has an operation at Stennis Space Center, Miss.; Goodrich has a service center in Foley, Ala.