Safran Secures EU Approval for $18 Billion Collins Aerospace Acquisition

Safran, a prominent French manufacturer of aircraft engines and equipment, has secured approval from the European Union's antitrust regulatory body for its $18 billion acquisition of Collins Aerospace's flight control business. This approval follows Safran's commitment to sell its actuator business in North America, which has addressed concerns about reduced competition in the supply market for THSA systems and potential price increases.

Ask Aime: What impact will Safran's acquisition of Collins Aerospace's flight control business have on the aerospace industry?

The acquisition, announced by Safran in 2023, represents the company's largest deal since its 2018 purchase of Zodiac Aerospace, a seat manufacturer. The strategic move aims to better position Safran for the next generation of increasingly computerized aircraft and to expand its product offerings to both civilian and military aircraft manufacturers.

The European Commission highlighted that Safran's proposal to divest its North American THSA business, including factories in Canada and the United States, as well as assets in Mexico, effectively addressed concerns about potential reductions in competition. The commission will conduct a separate review of the potential buyer, woodward, which agreed to acquire the business from Safran in December of last year.

Collins Aerospace, a subsidiary of rtx Corp., is a key player in the aerospace industry, and its flight control business is a significant addition to Safran's portfolio. The European Commission's approval of the acquisition marks a pivotal moment for Safran, enabling it to proceed with its strategic expansion into the flight control systems market. The divestment of the North American THSA business is expected to mitigate any potential negative impacts on competition, ensuring that the market remains dynamic and competitive.