European Commission clears the creation of a joint venture by Boeing and Safran for the production of auxiliary power units

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The European Commission has approved, under the EU Merger Regulation, the creation of a joint venture by The Boeing Company (“Boeing”) of the US and Safran S.A. of France. The joint venture will manufacture auxiliary power units (“APUs”) that provide electrical power to the aircraft while the engines are shut down.

Boeing designs, manufactures and sells commercial aircraft and defence, space and security systems. Safran designs, manufactures and sells aerospace systems as well as aircraft and defence equipment.

The Commission concluded that the proposed acquisition would raise no competition concerns.

  1. 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.
  2. 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 information is available on the Commission’s competition website, in the public case register under the case number M.8858.

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