Safran offers sale of North American unit to win EU okay on Collins deal, source says

By Foo Yun Chee

BRUSSELS (Reuters) - French engine and aircraft equipment maker Safran has offered the sale of a business in North America which it agreed in December, as a remedy to address EU concerns about its $1.8 billion bid for Collins Aerospace's flight controls business, a person with direct knowledge of the matter said on Wednesday.

Safran submitted its offer to the European Commission last Friday which subsequently sought feedback from rivals and customers before it decides whether to accept the proposal, demand more concessions or open a four-month long investigation.

The EU antitrust watchdog asked whether there are suitable buyers for Safran's electromechanical actuation business in North America, the person said.

Safran already agreed to sell the unit in December, including its intellectual property, operations assets, staff, and customer agreements for its horizontal stabilizer trim actuation systems, to U.S. aircraft parts maker Woodward. The Commission's questionnaire did not mention Woodward, the person said.

Actuators convert electronic instructions from the cockpit to the physical movement of parts to help control aircraft, for example by providing extra lift during landing.

Safran referred to its December 20 announcement on its agreement with Woodward, when asked to comment. It said at the time it expected the deal to complete mid-2025.

Respondents have been given until Thursday to comment on the offer. Collins is Safran's biggest deal since it acquired seat maker Zodiac in 2018.

(Reporting by Foo Yun Chee;Editing by Elaine Hardcastle)