The Competition Bureau has concluded its review of the proposed merger between United Technologies Corp. (UTC) and Raytheon Company and has issued a No Action Letter (NAL) to the companies.
The NAL confirms that the Bureau will not challenge the proposed merger at this time. The terms of the NAL are subject to the implementation of the settlement agreement between the merging parties and the United States Department of Justice (U.S. DOJ), as well as the European Commission Directorate-General for Competition (EC).
The Bureau concluded that the proposed transaction would lead to a likely substantial lessening of competition in certain markets related to the military airborne radios and military GPS businesses of the merging parties. However, remedies obtained by the U.S. DOJ and the EC would see UTC sell its military GPS business and Raytheon sell its military airborne radios business in their entirety to BAE Systems, Inc. or another approved buyer.
The Commissioner of Competition is satisfied that the remedies prescribed by these agreements adequately resolve the Bureau’s concerns with this transaction.
As UTC and Raytheon supply and distribute products to Canadian and foreign markets, the Bureau carried out its review in cooperation with the U.S. DOJ and the EC. Each authority reviewed the effects of the transaction under its distinct legal framework.
When a merger is subject to regulatory approvals in other jurisdictions, the Bureau works closely with its international counterparts.
The Bureau’s long-standing relationship with the U.S. DOJ ensured an efficient and coordinated review of this matter, consistent with the agencies’ agreement on Best practices on cooperation in cross-border merger investigations.
The Competition Act allows for a one-year period following the completion of a transaction during which the Commissioner may bring an application to the Competition Tribunal challenging the transaction.