DOJ to require Safran to divest assets to proceed with RTX asset acquisition

The Justice Department’s Antitrust Division announced that it will require Safran, S.A. and Safran USA Inc. (SAFRY) to divest its North American actuation business and related assets to resolve antitrust concerns arising from its proposed $1.8B acquisition of Collins Aerospace’s actuation and flight control business from RTX Corporation (RTX). The divestiture resolves concerns that the transaction would recombine assets that were divested as part of the Division’s settlement of United Technologies Corporation’s acquisition of Rockwell Collins in 2018. UTC merged with Raytheon Company in 2020, forming Raytheon Technologies. The Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the Division’s competitive concerns. “Today’s settlement is a structural solution to an acquisition that would have harmed competition for important aircraft components that are critical to passenger safety. The proposed divestiture to Woodward, an established provider in the aerospace industry, ensures that American customers will continue to benefit from competition, and the incentives of Woodward, the merging parties, and their customer base are aligned with the remedy’s success,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division.