EU Clears GE-Smiths Deal

European regulators cleared GE’s $4.8 billion bid to buy Smiths Aerospace, after finding the deal would not threaten competition. "The new entity would have neither the ability nor the incentive to discriminate against its downstream competitors in the supply of aircraft engines as there are credible alternative suppliers of engine components," the commission said in a statement. "We are pleased by the European Commission's decision. We have now completed the merger review process, and we look forward to closing this transaction in the coming weeks. This merger will enable GE to offer a broader set of advanced aviation products and to create greater value for our customers," GE said in a statement. GE announced in January that it planned to acquire Smiths Aerospace in a $4.8 billion transaction, adding Smiths’ flight management systems, electrical power management, mechanical actuation systems and airborne platform computing systems to GE’s commercial and military aircraft engines business. GE’s earlier bid to acquire Honeywell was foiled by European regulators in 2001. Adding Smiths Aerospace to its portfolio will increase GE’s position on the Lockheed Martin-led Joint Strike Fighter, as well as on the Boeing 787 Dreamliner. GE already has been expanding its presence in avionics through GE Fanuc Embedded Solutions, a joint venture with Fanuc Ltd., of Japan. The latter company has acquired Condor Engineering, SBS Technologies and, as of last November, U.K.-based Radstone Technology. For related news