The EU Commission approves UTC’s acquisition of Rockwell Collins under conditions

A geared turbofan at Pratt & Whitney's production hub in West Palm Beach (copyright: Pratt & Whitney - a UTC Company- 2018; Source: Pratt & Whitney's website, media center)

A geared turbofan at Pratt & Whitney’s production hub in West Palm Beach (copyright: Pratt & Whitney – a UTC Company – 2018; Source: Pratt & Whitney’s website, media center)

Last week, the European Commission approved, under the EU Merger Regulation, the acquisition of Rockwell Collins by United Technologies Corporation (UTC) in the aerospace sector. The EU watchdog clarified that the decision is conditional to the divestment by UTC of businesses in actuators, pilot controls, ice protection and oxygen systems, which is something that UTC has granted, ultimately paving the way to the mega-merger. The proposed $30 billion acquisition, first announced in September last year, would bring together two aerospace giants, creating a new player in the top echelon of suppliers to Boeing, Airbus, Bombardier and other plane makers. Background Last September, after months of rumours, the two American multinational companies Rockwell Collins Inc. and United Technologies Corporation announced with a joint statement they had reached a “definitive agreement” under which United Technologies will acquire Rockwell Collins for $140.00 per share, in cash and UTC stock. UTC Chairman and Chief Executive Officer Greg Hayes said back then: “This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems”. “We are extremely pleased to announce this compelling transaction with UTC which is a testament to the value we have created for Rockwell Collins’ employees, customers and shareowners”, Kelly Ortberg, Chairman, President and Chief Executive Officer of Rockwell Collins commented. On January 11 this year then, the two parts announced Rockwell Collins’ shareowners had “overwhelmingly approved” the proposed acquisition. An official Rockwell Collins press release said that more than 96 percent of all votes cast, representing more than 72 percent of all shares of common stock outstanding on the record date for the special meeting, were “in favour of the transaction”. Competition concerns Despite such enthusiastic initial phase, the proposed acquisition had to face a few hiccups and hurdles. Many sources have indeed reported major players in the aviation industry, such as Boeing and Airbus, expressing wide concerns over the merger. UTC and Rockwell Collins produce indeed components that are highly complementary, embracing a wide range of elements of an aircraft combined: the first one focuses on products such as power generation, propulsion systems and landing systems, while the latter focuses on avionics and different cabin interior products. Analysts said the combined company could make more than 50 percent of the systems content on a Boeing 787 aircraft by dollar value. A source close to Airbus had told Reuters it maintained concerns about the merger. Also, problems at Pratt & Whitney have delayed European aircraft deliveries, and Airbus has publicly warned UTC to focus on delivering jet engines on time. After those initial concerns, though, Boeing gave its consent to the deal last month, after it signed a new supply deal with both companies that it described as a “win-win” for all sides, as reported by the Financial Times. EU’s watchdog ok-go So, after Boeing’s assent to proceed, UTC last week cleared one of the potentially biggest hurdles on the way to finalise the mammoth deal with Rockwell Collins, and won the EU’s approval to go ahead. The European Commission formally said concessions offered by UTC addressed its concerns about the deal, and it announced it approved the takeover of Rockwell Collins by UTC. “When we take a trip on a plane, we usually don’t think about all the different components that go into building the aircraft. UTC and Rockwell Collins are two of the biggest suppliers of these components to aircraft makers worldwide”, Commissioner Margrethe Vestager, in charge of competition policy said last week. “We need to ensure that competition is preserved for all of them”, the Commissioner also declared. The investigation In particular, the Commission was concerned that the transaction, as originally notified, would have reduced competition in the markets for trimable horizontal stabiliser actuators (THSAs), certain pilot controls (throttle quadrant assemblies and rudder brake pedal systems), pneumatic wing ice protection and oxygen systems. In its official statement, which was released on May 4, the Commission  concluded that other overlaps and vertical links between UTC and Rockwell Collins’ activities “did not lead to any competition concerns, mainly because of the existence of a sufficient number of alternative suppliers”. The EU’s regulatory authority said it also investigated whether the merged entity would have the ability and incentive to use components in its portfolio to shut out competitors, through practices such as bundling or tying, and last week it said it concluded that the merged entity would have “neither the market power nor the incentives to engage in such strategies and harm competition”. UTC’s concessions The commitment by UTC to sell parts of the business, in a bid to shorten the distance with the requests by the European Commission, played a substantial role. “We can allow this merger to go ahead because in all the markets where we raised concerns, UTC has committed to divest activities covering the entire overlap between the two companies”, Commissioner Vestager said last week. UTC has indeed declared it has agreed to sell two research businesses in oxygen systems as well as Rockwell Collins’ entire global THSA and pilot control businesses, located at several sites mainly in the US and Mexico, and Rockwell Collins’ entire global business in ice protection, located in a single facility in the US. “Therefore, the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns in the European Economic Area (EEA)”, the EU’s watchdog declared last week. “The decision is conditional upon full compliance with the commitments”, the statement by the Commission added. Big players Headquartered in Cedar Rapids, Iowa, Rockwell Collins Inc. manufactures and supplies aviation and integrated solutions for both commercial and government applications. It also manufactures and supplies a variety of aircraft cabin interior products. UTC is headquartered in Farmington, Connecticut. It provides high-technology products and services for the building systems and aerospace industries worldwide. The UTC group comprises Otis Elevator Company, UTC Climate, Controls & Security, Pratt & Whitney, and UTC Aerospace Systems. The deal is expected to create one of the world’s largest aerospace equipment suppliers. The two parts have said the transaction is projected to close by the third quarter of 2018.

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

IOM Women make up the majority of victims of human trafficking for sexual exploitation. (file photo)

Epstein files: ‘No one is too wealthy or too powerful to be above the law’; rights experts demand accountability

This article is published in association with United Nations. The large-scale disclosure of materials known as the “Epstein Files” has revealed “disturbing and credible evidence” of what independent human rights experts describe as a possible global criminal enterprise involving systematic sexual abuse, trafficking and exploitation of women and girls. In a statement on Monday, the independent […]
© UNICEF/Dmytrii Bortkevych A young girl carries firewood for a warming stove at a house in the Kyiv region.

As conditions worsen in Ukraine, refugees struggle to return

This article is published in association with United Nations. As Ukraine prepares to enter the fifth year of the full-scale Russian invasion on 24 February, UN monitors say harm to civilians has “demonstrably worsened”, while energy attacks and freezing temperatures are making it harder for displaced families to return. “More people are killed and injured each […]
© UNICEF/Mohammed Nateel A young boy in Gaza City eats a plate of food.

Gaza: Lifesaving aid operations continue despite restrictions

This article is published in association with United Nations. Humanitarians in the Gaza Strip continue to face impediments in their efforts to deliver lifesaving aid to the population.  The United Nations said that its teams attempted to coordinate eight humanitarian missions on Friday and five were fully facilitated.  The remaining three – which included a mission to reach a water treatment plant in Khan Younis – were denied […]
© CDC/Cynthia S. Goldsmith, Russell Regnery Mpox (previously known as monkeypox) is a viral disease caused by an orthopoxvirus called monkeypox virus (MPXV).

New recombinant mpox strain detected in UK and India, WHO urges continued monitoring

This article is published in association with United Nations. The detection of a newly identified recombinant mpox virus containing genetic material from two known strains underscores the need for continued genomic surveillance, the UN World Health Organization (WHO) said on Saturday, as the overall global public health risk assessment remains unchanged. WHO confirmed that two cases […]
Aytac Mammadova is a third-year Public Health student at Azerbaijan Medical University

Inclusive Healthcare: Improving Accessibility and Care for Disabled Patients through Investment and Workforce Innovation

This article was exclusively written for The European Sting by Ms. Sadia Khalid, a Scientist-Physician (MBBS, MD) at Tallinn University of Technologye. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on […]
© UNICEF/Oleksii Filippov Workers secure plywood boards over the shattered windows of a residential building damaged by a missile strike in eastern Ukraine. (file)

Ukraine: UN aid convoy reaches frontlines in Dnipro

This article is published in association with United Nations. A UN humanitarian convoy reached frontline communities in Ukraine’s Dnipro region on Wednesday, delivering critical medical and hygiene supplies as fighting continues to take a heavy toll on civilians and infrastructure across the country. UN Spokesperson Stéphane Dujarric told reporters that access to the town had been […]
© WFP/Maxime Le Lijour A child helps to pitch his family's tent after it collapsed during heavy rain in Gaza.

UN warns civilians remain at risk as airstrikes continue across Gaza

This article is published in association with United Nations. Fresh airstrikes and shelling across the Gaza Strip over the past 24 hours have put civilians at renewed risk and compounded months of hardship, the UN said on Tuesday, warning that humanitarian needs continue to outpace access and capacity. UN Spokesperson Stéphane Dujarric told journalists at the […]
United Nations Palestinian families are being evicted from the Silwan neighborhood in East Jerusalem.

West Bank: New Israeli measures further erode prospects for two-State solution

This article is published in association with United Nations. UN Secretary-General António Guterres voiced grave concern on Monday over the reported decision by the Israeli security cabinet to authorize a series of administrative and enforcement measures in Areas A and B in the occupied West Bank.  The measures would make it easier for Jewish settlers to take over Palestinian […]
© Unsplash/Hosein Charbaghi A view of Tehran, Iran's capital city.

Guterres welcomes resumption of Iran-US talks

This article is published in association with United Nations. UN Secretary-General António Guterres on Friday welcomed the resumption of talks between Iran and the United States.  The development follows weeks of tensions surrounding Iran’s nuclear programme and threats of a US military attack.  Delegations headed by US Special Envoy to the Middle East Steve Witkoff and Iran’s Foreign […]
© State Specialized Enterprise IAEA inspectors help ensure safety at Ukrainian nuclear power plants. .

Ukraine war keeps nuclear safety on a knife-edge, UN watchdog warns

This article is published in association with United Nations. Attacks on Ukraine’s power system highlight how the ongoing war threatens the safety of the country’s nuclear facilities, the head of the International Atomic Energy Agency (IAEA) warned on Friday.  Russian forces have been carrying out strikes on critical infrastructure amid freezing winter temperatures as their full-scale invasion approaches the […]
This article is published in association with United Nations.

Disability-Inclusive Healthcare: Breaking Barriers to Equity

This article was exclusively written for The European Sting by Ms. Mechoiteu Jijou Berny is a seventh-year medical student at Université des Montagnes in Bangangté, West Region of Cameroon. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and […]
This article was exclusively written for The European Sting by one of our passionate readers, Mr. Andrew Gardner, a strategic and international business consultant. The opinions expressed within reflect only the writer’s views and not necessarily The European Sting’s position on the issue.

Most European Countries are not yet Prioritising European-Made Arms 

This article was exclusively written for The European Sting by one of our passionate readers, Mr. Andrew Gardner, a strategic and international business consultant. The opinions expressed within reflect only the writer’s views and not necessarily The European Sting’s position on the issue. In October 2025, the European Defence Industry Programme (EDIP) was approved by the European […]
UN chief warns of ‘grave moment’ as final US-Russia nuclear arms treaty expires

UN chief warns of ‘grave moment’ as final US-Russia nuclear arms treaty expires

UN Secretary-General António Guterres has warned that the expiration of the New START treaty represents a “grave moment” for international peace and security, as binding limits on US and Russian strategic nuclear weapons fall away amid heightened global tensions. In a statement issued as the treaty expired at midnight GMT Thursday, he said the world […]
UN Ukraine A residential building in Ukraine shows signs of damage following overnight attacks.

Ukraine: Civilians injured, miners killed, in separate Russian attacks

This article is published in association with United Nations. A fresh wave of Russian strikes overnight across Ukraine injured several people and left thousands “without heat in the heart of winter,” the UN Humanitarian Coordinator in the country said on Tuesday.  Matthias Schmale was “appalled” by the attacks in Dnipro, Kharkiv and Kyiv, noting that many more people in several […]
UN News An injured child waits in the courtyard of Al-Amal Hospital in Khan Younis.

Gaza: Limited Rafah crossing reopening sparks hope – but also ‘massive trepidation’

This article is published in association with United Nations. The reopening of the Rafah crossing in the southern Gaza Strip on Monday after more than a year is being met with both optimism and fear, a senior official with the UN agency that assists the Palestinian people, UNRWA, has said.  The sole border point with Egypt is a […]
WFP Children in Fangak county, Jonglei State eat a cooked meal of sorghum. WFP provides food rations to food insecure families containing sorghum, oil, salt, peas and maize (January 2022).

South Sudan: ‘All the conditions for a human catastrophe are present’

This article is published in association with United Nations. Military tensions in South Sudan are “rapidly expanding” between Government forces and opposition militia as fighting continues in restive Jonglei state. Briefing journalists based at UN Headquarters in New York on Friday, Anita Kiki Gbeho, Officer in Charge of the UN Mission in South Sudan (UNMISS), said […]
© UNICEF/Oleksii Fili Children's toys are covered in snow outside a residential building in Kyiv during prolonged winter power and heating outages.

World News in Brief: Syria ceasefire welcomed, ‘Olympic truce’, Ukraine’s freezing children

This article is published in association with United Nations. The UN Commission of Inquiry on Syria has welcomed a ceasefire agreement between the Syrian Government and the mainly-Kurdish Syrian Democratic Forces (SDF), urging all parties to seize the moment to protect civilians and prevent further violations in the country’s northeast.  “We welcome efforts to bring stability […]
This article was exclusively written for The European Sting by Mr. Frank Shao is a Tanzanian medical student. He is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on the topic, nor The European Sting’s one.

Access to Healthcare: is it too much to ask?

This article was exclusively written for The European Sting by Mr. Khalil Al Bilani is a 5th-year medical student at Saint George’s University of Beirut. He is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect […]
UN Photo/Manuel Elías Ramiz Alakbarov (on screen), Deputy Special Coordinator for the Middle East Peace Process, briefs the Security Council meeting on the situation in the Middle East.

Potential turning point for Gaza as peace plan enters second phase: UN envoy

This article is published in association with United Nations. The start of a second phase of a stabilisation plan for Gaza offers a potential turning point for the war-ravaged enclave, a senior UN official told the Security Council on Wednesday. Ramiz Alakbarov warned that risks of violence escalating again remain high, while the situation in the […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com