The European Commission has given the go-ahead for United Technologies Corporation (UTC) to buy Raytheon, but with major conditions attached. The decision, announced on 16 March, will see UTC's aerospace business units combined with Raytheon's defence ones.
The two US-headquartered parties notified the EU on 24 January. While the Commission saw no risks to competition from vertical links between UTC and Raytheon activities, its investigation concluded that horizontal overlaps between their military GPS receiver and airborne radio businesses was problematic for the international marketplace.
Both are dominant suppliers of these technologies which constitute “a critical input for a broad range of military systems” and “are the only two real options currently available to US military aircraft manufacturers,” observed the Commission.
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