Posted By Uma Rajagopal
Posted on June 6, 2024
French jet engine maker Safran gets Italy’s clearance to buy Microtecnica
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)
