Justice Department Requires Safran to Divest Assets to Proceed with Acquisition of Raytheon Assets

The Justice Department’s Antitrust Division announced today that it will require Safran, S.A. and Safran USA Inc. (Safran) to divest its North American actuation business and related assets to resolve antitrust concerns arising from its proposed $1.8 billion acquisition of Collins Aerospace’s actuation and flight control business from RTX Corporation (RTX) (formerly Raytheon Technologies). The divestiture resolves concerns that the transaction would recombine assets that were divested as part of the Division’s settlement of United Technologies Corporation’s (UTC) acquisition of Rockwell Collins in 2018. UTC merged with Raytheon Company in 2020, forming Raytheon Technologies.

The Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the Division’s competitive concerns.

“Today’s settlement is a structural solution to an acquisition that would have harmed competition for important aircraft components that are critical to passenger safety. The proposed divestiture to Woodward, an established provider in the aerospace industry, ensures that American customers will continue to benefit from competition, and the incentives of Woodward, the merging parties, and their customer base are aligned with the remedy’s success,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “This settlement is another example of our commitment to transparency and relief that secures robust and enforceable commitments from the merging parties that account for industry dynamics. The Antitrust Division will apply heightened scrutiny to transactions that propose to recombine assets divested in response to the Division’s prior enforcement actions, taking appropriate consideration for changes in competitive conditions.”

As detailed in the complaint, Safran and RTX are two of the leading suppliers in the market for trimmable horizontal stabilizer actuators (THSAs) for large aircraft. A THSA helps an aircraft maintain the proper altitude during flight and is critical to the safety and performance of the aircraft. Safran and RTX compete head-to-head to develop and sell this critical component. Without the proposed divestiture, Safran’s acquisition of RTX’s actuation and flight control business would likely result in higher prices, lower quality, and reduced innovation to the detriment of customers and American consumers. The proposed divestiture of Safran’s North American actuation business includes the assets Safran had acquired under the Division’s 2018 settlement with UTC and Rockwell Collins. Safran has since operated these assets as a viable competitor in the market for THSAs.

The proposed settlement requires Safran to divest its North American actuation business, including THSAs and secondary flight control actuators, and its Canada-based electronic control unit, to Woodward Inc., an American company with significant experience in the aerospace industry, including serving large aircraft manufacturers. The divestiture assets also include the tangible and intangible assets necessary to produce and sell THSAs, secondary flight control actuators, and electronic control units. Woodward is expected to hire certain key Safran employees that today support the divested business lines.

The Antitrust Division, the European Commission, and the Competition and Markets Authority cooperated closely throughout the course of their respective investigations.

Safran is a French multinational company with its headquarters in Paris, France. Safran produces a wide range of products for the aviation, space, and defense sectors. In 2024, Safran had revenues of approximately €27 billion. 

RTX is an American multinational company, incorporated in Delaware and is headquartered in Arlington, Virginia. RTX is a major provider of aerospace and defense products and systems. In 2024, RTX had revenues of approximately $80 billion.

As required by the Tunney Act, the proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Soyoung Choe, Acting Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, NW, Suite 8700, Washington, D.C. 20530 or via email at ATR.DIA.Information@usdoj.gov. At the conclusion of the public comment period, the court may enter the final judgment upon finding that it is in the public interest.