The U.S. Department of Justice will require United Technologies Corp. to divest two Rockwell Collins divisions before it gives the final approval to the merger.
According to a statement released Monday night, Farmington, Conn.-based UTC will be required to sell off Rockwell Collins’ pneumatic ice protections business, which builds products to de-ice plane wings, and Rockwell’s trimmable horizontal stabilizer actuators business, which builds parts that help planes maintain proper altitude. The ice protections division operates in West Virginia, while the stabilizer actuators have facilities in California, Florida and Mexico.
“Today’s remedy ensures that customers continue to benefit from competition in the supply of these two aircraft components that are critical to safety,” Makan Delrahim, assistant attorney general of the Antitrust Division, said in a statement.
“The remedy allows the divestiture buyers to compete vigorously to provide high quality systems and service to customers.”
UTC Chief Executive Officer Greg Hayes told investors at a conference Sept. 14 that he expects Chinese regulators to give final approval to the $23 billion deal once the DOJ gives its approval.
“The process for closing on Rockwell Collins is moving forward with the recent U.S. Department of Justice approval being the latest milestone,” said Michele Quintaglie, a spokeswoman for UTC. “Once we have received all of the necessary approvals, we will announce the final closing of this transaction.”
l Comments: (319) 398-8366; email@example.com