April 19, 2017 / 3:09 PM / 9 months ago

EU clears Rolls-Royce's acquisition of Spain's ITP subject to conditions

BRUSSELS (Reuters) - European Union antitrust regulators said on Wednesday they had cleared the acquisition of aircraft engine components maker ITP by Rolls-Royce (RR.L) subject to its elimination of a conflict of interest in an engine consortium.

The engine consortium EPI, made up of Rolls-Royce, ITP, Germany’s MTU and France’s Safran (SAF.PA), designs and manufactures the engine powering the Airbus A400M, which competes with the Lockheed Martin (LMT.N) C-130J aircraft, powered by a Rolls-Royce engine.

    The European Commission said in a statement that it initially had concerns the merger would have allowed Rolls-Royce to gain additional influence on the decision-making process of the EPI consortium, on matters that affected its competitiveness against the Lockheed Martin C-130J.

    To allay those concerns Rolls-Royce offered commitments to eliminate the conflict of interest and ensure EPI remains competitive, the Commission said.

    Reporting by Julia Fioretti; editing by Philip Blenkinsop

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