The European Commission (EC) has given the green light for Iowa-based Rockwell Collins—which specializes in, among other areas, flight deck avionics and cabin electronics—to acquire cabin interior product supplier B/E Aerospace.
“The Commission concluded that the proposed acquisition would not raise competition concerns, because there are no overlaps or vertical links between the products of B/E Aerospace and Rockwell Collins,” the regulator said in its ruling.
B/E Aerospace supplies cabin interior products such as seats, lighting, oxygen systems and galley equipment, whereas Rockwell Collins works in avionics and cabin electronics products.
“The Commission further concluded that the combination of the two companies’ products would not lead to shutting out competitors from the market, as other suppliers of aviation and cabin interior products already have the possibility to offer a similar combination of products or could partner-up to compete against the merged entity for commercial opportunities,” the EC said.
Rockwell Collins is acquiring B/E Aerospace for $8.3 billion in a deal that is expected to complete in spring 2017. The companies’ shareholders have already approved the merger.
Combined, the two companies have nearly 30,000 employees, $8.1 billion in revenue and $1.9 billion in EBITDA for the 12 months ended Sept. 30, 2016. This is before accounting for synergies from the B/E Aerospace acquisition.
Victoria Moores email@example.com