MOFCOM Approves UTC's Acquisition of Goodrich with Divestiture Requirement

On June 15, 2012, the Ministry of Commerce ("MOFCOM") approved the acquisition of Goodrich Corporation ("Goodrich") by United Technologies Corporation ("UTC") subject to the divestment of the electronic systems business of Goodrich. Both companies are headquartered in the United States and active in the production and sale of aviation equipment. This marks the fourth conditional clearance issued by MOFCOM in the first half of 2012 and the only case where the core remedies are structural.

Review Process. MOFCOM received the notification on December 12, 2011 and officially accepted it on February 6, 2012. A Phase 2 investigation was opened on March 2 and extended on May 31, which was set to expire on July 30. The companies submitted the final remedy proposal on June 6, one week before MOFCOM issued the final decision.