Monday, July 22, 2013

FTC OKs GE Avio purchase

The Federal Trade Commission has given a thumbs up to General Electric's purchase of the aeronautics unit of engine-maker Avio SpA. GE agreed not to interfere with the development of a key engine component for United Technologies Pratt & Whitney, an aircraft engine maker that competes with GE. The agreement resolves FTC charges that the proposed $4.3 billion acquisition unveiled in December would be anticompetitive.The concerns stemmed from the fact that GE and Pratt & Whitney are the sole firms that make engines for the Airbus A320neo. The FTC's move follows a decision earlier this month by the European Commission to clear the purchase, saying possible conflicts of interest had been addressed. Avio makes components for commercial and military jet engines as well as propulsion systems for satellite-launch vehicles. (Source: WSJ, 07/19/13) Gulf Coast note: Airbus will be building A320neo jets in Mobile, Ala. Previous