French aerospace firm Safran’s proposed acquisition of Collins Aerospace’s actuation and flight-control arm has hit a snag after the Italian government opposed part of the sale.
The Italian government has objected to the acquisition of Microtecnica, a company holding relevant assets in Italy, and exercised its ‘golden power’ veto.
Safran insists it “remains committed” to the transaction.
“[We are] working with all parties to determine the appropriate next steps,” it says.
“Further information will be provided as appropriate.”
Completion of the acquisition also depends on other regulatory approvals and closing conditions.
Safran disclosed in July that it was looking to acquire the actuation and flight-control activities of Collins, which is a division of RTX, through a cash transaction.
Collins Aerospace supplies the systems to commercial and military aircraft, as well as helicopters, and the activity is spread across eight facilities in Europe and Asia.
In July, Safran described the business as a “perfect fit” with its own operation and estimated that it will generate $1.5 billion in sales and earnings of $130 million in 2024.