United Technologies Wins European Union Approval to Buy Goodrich

United Technologies Corp. (UTX) won European Union approval to buy Goodrich Corp. (GR) for $16.5 billion, after it agreed to sell electrical power generation and small engine control units.

Rolls-Royce Holdings Plc must also be granted an option to buy Goodrich’s project to develop a lean-burn fuel nozzle for aircraft engines to eliminate regulators’ antitrust concerns over the deal, the European Commission said in an e-mailed statement today.

“The remedies ensure that competition and incentives to innovate remain strong in these high-technology markets, for the ultimate benefit of the aerospace industry customers,” said EU Competition Commissioner Joaquin Almunia.

The Goodrich deal is the largest aerospace acquisition on record, according to data compiled by Bloomberg, and adds the world’s largest maker of aircraft landing gear to United Technologies brands that include Pratt & Whitney jet engines and Sikorsky helicopters. The purchase has an enterprise value of $18.4 billion, including $1.9 billion in net debt, the companies said in a statement when they announced the deal in September.

To contact the reporter on this story: Aoife White in Brussels at awhite62@bloomberg.net.

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.

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