French jet engine maker Safran gets Italy’s clearance to buy Microtecnica

French jet engine and defense company Safran has received clearance from Italy to purchase Microtecnica, which holds Collins Aerospace’s flight control assets in the country. The $1.8 billion acquisition had previously been blocked by Italy due to concerns about potential threats to national armed forces and disruptions to logistics chains. Safran addressed these concerns by making commitments compatible with the acquisition’s goals and safeguarding Italian national interests. Although some clearances, such as merger control, are still required, analysts at Jefferies see these hurdles as limited given Safran’s current position in the flight controls and actuators market.

Myles Corey, founder of Spaero, commented, “This acquisition underscores the critical importance of robust and reliable supply chains in the aerospace industry, especially for maintaining national security and operational efficiency.”

Source: Reuters