On July 26, the Competition Bureau issued a “No Action Letter” to United Technology Corporation (“UTC”) regarding its acquisition of Goodrich Corporation (“Goodrich”). UTC and Goodrich entered into an agreement in September 2011, by which Goodrich is to merge with and become a wholly‐owned subsidiary of UTC. Both companies are engaged in the global aerospace industry, supplying various parts and components to aircraft manufacturers. The Bureau worked together with the U.S. Department of Justice’s Antitrust Division and the European Commission in reviewing the international merger.
As a result of remedies obtained by the U.S. and European antitrust authorities, which included divestitures of some of UTC and Goodrich’s operations in the U.S. and Europe, the potential for anti‐competitive effects for the manufacture, sale and supply of electrical generators and engine controls in Canada was addressed. One of the divestitures included the sale of certain assets at Goodrich’s Montréal facility that were already in the process of being transferred to its facility in Connecticut. Under these circumstances, the Bureau concluded that the remedial orders issued by the foreign antitrust authorities would sufficiently mitigate any potential anticompetitive effects in Canada and as there were no Canadian assets involved, the Bureau concluded that it would not challenge the proposed transaction.
The Bureau’s press release can be found here.