By Paul Vieira
OTTAWA--Canada's antitrust watchdog said Thursday it would take
no action concerning United Technologies Corp.'s (UTX) planned
$16.5 billion purchase of Goodrich Corp. (GR) even though the deal
initially posed competition concerns for the Canadian aircraft
market.
The Competition Bureau, however, said in a statement it cleared
the merger because conditions attached to the deal by U.S. and
European antitrust agencies "appear to sufficiently mitigate the
potential anti-competitive effects in Canada."
The bureau said its review of the deal, conducted along with
U.S. and European authorities, identified certain product markets
that raised competition concerns -- mainly in the sale of
electrical generators and engine parts. As a result, UTC and
Goodrich agreed to divest some of their operations that build
electrical generators and engine parts in the U.S. and Europe.
"The proposed divestitures will enable Canadian companies to
competitively source generators and electrical distribution
systems, as well as engines," Canada's anti-trust agency said.
Earlier Thursday, European Union regulators and the U.S.
Department of Justice granted conditional approval to the deal, one
of the biggest in recent years in the aerospace industry. They said
without the agreed-upon divestitures, the deal would likely have
resulted in higher prices and less favorable contract terms.
-Write to Paul Vieira at paul.vieira@dowjones.com
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