China conditionally approves UTC takeover of Goodrich
06/15/2012| 04:43am US/Eastern
China on Friday granted conditional approval to U.S. conglomerate United Technologies Corp's $16.5 billion takeover of aircraft parts maker Goodrich Corp, saying Goodrich needed to divest or sell parts of some businesses.
Goodrich will have to divest its electrical power generation and transmission systems businesses and should sell 60 percent of Aerolec, a joint venture with Thales Avionics, within six months, China's Commerce Ministry said on its website.
The European Commission is also currently examining the deal, UTC's biggest in a decade, with which it aims to build critical mass in new aircraft technology and plane services to take advantage of a recovery in civil aviation demand.
UTC has offered to sell undisclosed assets to secure EU regulatory approval of the takeover.
The Commission, which has set an August 31 deadline for a decision on the deal, is expected to discuss the proposed concessions with rivals and customers of United Tech and Goodrich.
United Technologies' products include Pratt & Whitney engines and Sikorsky helicopters and the company is a top player in aircraft landing gear.
(Reporting by Beijing Newsroom; Editing by Ken Wills and Edwina Gibbs)