Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves acquisition of B/E Aerospace by Rockwell Collins, (Apr 12, 2017)

By Linda O’Brien, J.D., LL.M.

The proposed acquisition of B/E Aerospace by Rockwell Collins, both of the United States, has been approved by the European Commission (EC). B/E Aerospace is a leading supplier of aircraft cabin interior products such as cabin seats, lighting, and oxygen systems, and food and beverage preparation and storage equipment. Rockwell Collins is a provider of avionics and cabin electronics products and solutions for commercial and government application aircrafts.

The EC announced today that it determined that the proposed acquisition would not raise competition concerns because there are no overlaps or vertical links between the products of B/E Aerospace and Rockwell Collins. Furthermore, the combination of the two companies' products would not lead to shutting out competitors from the market since other suppliers of aviation and cabin interior products already have the possibility to offer a similar combination of products or could partner-up to compete against the merged entity for commercial opportunities.

In October 2016, Rockwell Collins entered into an agreement to acquire B/E Aerospace for $8.3 billion in total consideration, significantly increasing Rockwell Collins’ scale and diversifying its product portfolio. The proposed acquisition was approved by Rockwell Collins’ shareholders in March. According to the company’s statement, the transaction is expected to close later this spring upon completion of all requisite regulatory approvals.

Grupo Antolin-Irausa acquisition. The EC also has cleared the acquisition by Lear Corporation of the United States of the seats and metal business of Grupo Antolin-Irausa, S.A. of Spain. The transaction consists of twelve industrial facilities and two research and development centers located in the Czech Republic, France, Morocco, Portugal, and Spain, active in the manufacturing of automotive seats and seating components.

Lear is a first tier supplier of complete automotive seating systems and components, as well as electrical distribution systems and electronic components. The Commission concluded that the proposed acquisition would not raise competition concerns given the parties' moderate combined market positions resulting from the proposed transaction and the presence of a number of strong players.

Companies: B/E Aerospace, Inc.; Rockwell Collins; Lear Corp.; Grupo Antolin-Irausa, S.A.

News: AcquisitionsMergers Antitrust