The EU Commission said Thursday that it had approved unconditionally Safran SA's (SAF.FR) acquisition of Zodiac Aerospace (ZC.FR), as the deal raised no competition concerns in the relevant markets.
Safran's increased market share as a result of the deal is limited and it will face strong competition from other suppliers in the aircraft electrical-systems market, the commission said.
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On markets in which the two companies participate at different stages of the supply chain, the commission said the company won't have the ability or incentive to foreclose third parties.
"Both Safran and Zodiac are significant French actors in the aeronautics markets but competition in these markets in Europe will remain strong," Competition Commissioner Margrethe Vestager said.
The takeover, in which Safran will pay around EUR7.3 billion ($8.7 billion) for Zodiac, was notified to the commission on Nov. 16.
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(END) Dow Jones Newswires
December 21, 2017 07:26 ET (12:26 GMT)