United Technologies merger will require asset sale

WASHINGTON (AP) — The Justice Department said Thursday that United Technologies Corp. must sell some assets in order to proceed with its purchase of aerospace-parts maker Goodrich Corp. in an $18.4 billion deal that is the largest merger in aircraft industry history.

The sale involves assets used in the production of electrical power systems and aircraft engine control systems.

The government said the merger, as first proposed, would have resulted in higher prices, less favorable contractual terms and less innovation for several aircraft components.

The department filed a proposed settlement in federal court that would resolve competitive concerns about the deal between United Technologies, based in Hartford, Conn., and Charlotte, N.C.-based Goodrich, which makes jet components such as landing wheels and brakes.

"The acquisition as originally proposed would have lessened the vigorous competition that currently exists among manufacturers of large main engine generators, aircraft turbine engines and engine control systems for large aircraft turbine engines," Jamillia Ferris, chief of staff and counsel at the Justice Department's antitrust division, said in a statement.