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European Commission okays GE's Avio buy

Tuesday - 7/2/2013, 6:00pm  ET

BRUSSELS (AP) -- The European Commission says it has approved General Electric Co.'s $4.3 billion purchase of the aviation parts division of Italy's Avio SpA after GE gave assurances it won't hold back Avio's participation in the European jet fighter project, Eurojet.

Avio is an important contributor to the consortium working on the Eurojet. After GE announced the Avio deal in December, the commission's antitrust authority said the purchase could create a conflict of interest. Both GE and Avio make engines for fighter jets.

The commission, the European Union's executive arm, said in a statement Tuesday that GE has made commitments to protect consortium information and to ensure " Eurojet and Eurofighter can continue to participate in future campaigns for export sales."

It approved the deal on the condition that GE follows through.


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