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French jet engine maker Safran gets Italy’s clearance to buy Microtecnica
Global Banking & Finance Review®
Company
By Olivier Sorgho
(Reuters) – French jet engine maker and defence company Safran said on Thursday it had received clearance from Italy to buy Microtecnica, the company which holds Collins Aerospace’s flight control assets in the country.
Italy had previously blocked the planned $1.8 billion purchase, saying it could have threatened supplies to national armed force while interrupting logistics chains.
“Safran made a number of commitments, which are compatible with the targeted objectives of this acquisition, and which address the concerns expressed in the initial Italian decree of Nov. 16, 2023 and provide adequate safeguards of the Italian national interests,” the company said on Thursday.
Safran said it would still need to get some clearances, such as merger control, to complete the deal.
“We see these hurdles as likely limited given that Safran is not currently a significant player in flight controls & actuators,” Jefferies wrote in a note to clients.
(Reporting by Olivier Sorgho; editing by Jason Neely and Rashmi Aich)
Merger control refers to the regulatory process that reviews and approves mergers and acquisitions to ensure they do not create unfair competition or harm consumers.
A jet engine maker is a company that designs and manufactures engines used in aircraft, providing propulsion and power for various types of jets.
A defense company specializes in producing technology and equipment for military and defense applications, including weapons, aircraft, and other defense systems.
Flight control assets are systems and components that manage the flight of an aircraft, including mechanisms for steering, stability, and navigation.
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