March 13, 2020 / 3:47 PM / 3 months ago

EU clears UTC purchase of Raytheon, subject to conditions

FILE PHOTO: A screen shows the logos and trading information for defense contractor Raytheon Co, and United Technologies Corp. on the floor at the New York Stock Exchange (NYSE) in New York, U.S., June 17, 2019. REUTERS/Brendan McDermid

BRUSSELS (Reuters) - The European Union has cleared United Technologies Corporation’s (UTC) (UTX.N) planned acquisition of Raytheon (RTN.N), subject to conditions, the European Commission said on Friday.

UTC agreed in June to combine its aerospace business with U.S. contractor Raytheon Co and create a new company worth about $121 billion, in what would be the sector’s biggest ever merger.

The Commission said it had had concerns that the transaction would have reduced competition in the markets for military GPS receivers and airborne radios.

To address these concerns, UTC and Raytheon offered to divest UTC’s entire military GPS receiver and anti-jamming business located in Iowa and Raytheon’s entire military airborne radios business, based in Indiana

The Commission said that the remedies removed the entire horizontal overlap and the proposed transaction, as modified by the commitments, would no longer raise competition concerns.

Reporting by Philip Blenkinsop

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