BRUSSELS, Feb 19 (Reuters) - EU antitrust regulators are
asking rivals and customers whether Safran's bid for
Collins' flight controls business would give the French engine
and aircraft equipment maker more market power, a person with
direct knowledge of the matter said on Wednesday.
The European Commission, which is now examining the deal,
has sent questionnaires, giving respondents until Feb. 24 to
reply, the person said.
Safran announced the $1.8 billion deal to buy Collins
Aerospace's actuation and flight controls business in July last
year to position it for the next generation of aircraft. The
deal is its biggest since it acquired seat maker Zodiac in 2018.
Actuators, which convert electronic instructions from the
cockpit to the physical movement of parts to help control
aircraft, provide critical cockpit functions such as providing
extra lift during landing.
The EU competition enforcer is looking at conglomerate
effects, the person said, referring to the impact of deals
between companies in different industries or involved in
unrelated business activities.
The questionnaire also asked about Safran's Horizontal
Stabilizer Trim Actuation (HSTA) systems for aircraft
stabilization and Collins' thrust reverser actuation systems
(TRAS), among others.
Safran agreed to sell its electromechanical actuation
business in North America, which includes its intellectual
property, operations assets, talent, and long-term customer
agreements for HSTA systems, to U.S. aircraft parts maker
Woodward in December.
Safran said the divestment was a step forward towards the
Collins deal. The Commission is scheduled to finish its
preliminary review by March 21. It can open a four-month long
investigation if it has serious concerns.
The UK's Competition and Markets Authority is also assessing
the deal. Collins Aerospace is part of U.S. aerospace and
defence giant Raytheon Technologies, recently renamed RTX
.