French aerospace giant Safran is poised to receive conditional approval from European Union antitrust regulators for its $1.8 billion bid to acquire Collins Aerospace‘s flight controls business, according to sources familiar with the matter. The European Commission‘s decision hinges on Safran’s agreement to divest its electromechanical actuation business in North America.
The proposed acquisition, announced in July 2023, is a strategic move for Safran, aiming to strengthen its position in the next generation of increasingly computerized aircraft. However, the European Commission expressed concerns about potential competition within the sector, prompting the requirement for divestiture.
To address these concerns, Safran agreed in December to sell its electromechanical actuation unit in North America to U.S. aircraft parts supplier Woodward. This divestiture includes intellectual property, operational assets, workforce, and customer contracts related to horizontal stabilizer trim actuation systems. Actuators, crucial components in aircraft operations, convert electronic cockpit instructions into physical movements, such as adjusting flight surfaces.
The European Commission is expected to finalize its preliminary review this week. Neither the Commission nor Safran has provided official comments on the pending approval. The acquisition represents Safran’s largest since its 2018 purchase of seat manufacturer Zodiac.
