Safran Cleared to Acquire Collins Aerospace Unit with Conditions

Deal News | Apr 07, 2025 | EIN

The European Commission has approved the acquisition by Safran USA Inc. of part of Collins Aerospace's actuation business, contingent upon specific conditions. The purchase, governed under the EU Merger Regulation, involves segments of Collins Aerospace, a subdivision of RTX Corporation, while being overseen by the European Commission, UK Competition and Markets Authority, and the US Department of Justice. Safran and Collins’ operations have been considered complementary; however, the initial deal raised concerns about decreased competition in the trimmable horizontal stabiliser actuator systems (THSA) market. To alleviate the issue, Safran offered to divest its North American THSA operations. This also provides Safran with an expanded aerospace presence, enhancing their product portfolio for aircraft manufacturers across civil and defense sectors. With these strategic remedies, the Commission deemed the merger non-threatening to competition. Despite a conditional positive decision, the purchase by Safran of the THSA business from Woodward Inc. will undergo a distinct approval process.

Sectors

Aerospace and Defense
Regulatory and Compliance

Geography

European Union – The regulatory approval for the acquisition was primarily conducted by the European Commission under EU Merger Regulation.
United States – Both Safran and Collins Aerospace have operational ties to the US, and the US Department of Justice is involved in reviewing the transaction.
Canada – Part of the THSA business Safran offered to divest includes sites in Canada.

Industry

Aerospace and Defense – The transaction involves major companies in the aerospace and defense sector, including major suppliers for aerospace components.
Regulatory and Compliance – The article details a merger process with oversight from regulatory bodies including the European Commission and other international authorities.

Financials

Participants

Name	Role	Type	Description
Safran S.A.	Acquirer	Company	A leading French aerospace company involved in civil and military aircraft equipment and systems.
Collins Aerospace	Target	Company	A division of RTX Corporation providing aerospace and defense products.
European Commission	Regulatory Body	Government	The regulatory authority responsible for approving the merger under EU Merger Regulation.
Competition and Markets Authority	Regulatory Body	Government	The UK competition authority involved in the review of the transaction.
Department of Justice	Regulatory Body	Government	US Department overseeing compliance with antitrust laws in the review.
Woodward Inc.	Potential Purchaser	Company	The company with whom Safran entered into an agreement for the purchase of its THSA business, pending further review.