European Commission clears creation of Boeing, Safran JV

European Commission approved (28-Sep-2018), under the EU Merger Regulation, the creation of a JV by The Boeing Company and Safran SA. The JV will manufacture auxiliary power units (APUs) that provide electrical power to the aircraft while the engines are shut down. The European Commission concluded that the "proposed acquisition would raise no competition concerns", noting: "First, the overlaps between Safran and the joint venture are limited: Safran manufactures APUs for military aircraft and helicopters while the joint venture will manufacture APUs mainly for large commercial aircraft. Second, the Commission found that despite Boeing's strong position in the manufacturing of large commercial aircraft, the transaction is unlikely to lead to competing APU suppliers being shut out from the commercial aircraft APUs market. In fact, the transaction will lead to the creation of a new entrant in that market". The transaction was examined under the normal merger review procedure. [more - original PR]