Safran in Talks to Acquire Raytheon Flight Control Unit
French aerospace company Safran SA is in talks to acquire the flight control unit of Raytheon Technologies Corp. for around $1 billion. The unit, which produces aircraft parts such as landing gear and brakes, is part of Raytheon’s Collins Aerospace division.
Background of the Deal
The potential deal is part of Safran’s strategy to expand its presence in the aerospace industry. The company has been looking to acquire businesses that can help it become a major player in the industry. In 2019, Safran acquired aircraft engine maker CFM International for $9 billion.
The acquisition of the flight control unit would give Safran access to a range of products and technologies, including landing gear, brakes, and other components. It would also give the company a foothold in the North American market, which is the largest aerospace market in the world.
Raytheon’s Position
Raytheon is looking to divest its flight control unit in order to focus on its core businesses. The company has been divesting non-core assets in recent years in order to streamline its operations and focus on its core defense and aerospace businesses.
Raytheon has already sold off its missile defense business and its space and airborne systems business. The company is also in the process of selling its intelligence, surveillance, and reconnaissance business.
Safran’s Plans
Safran is looking to use the acquisition of the flight control unit to expand its presence in the aerospace industry. The company is already a major player in the industry, with a presence in Europe, Asia, and the Middle East.
The acquisition would give Safran access to a range of products and technologies, including landing gear, brakes, and other components. It would also give the company a foothold in the North American market, which is the largest aerospace market in the world.
Impact of the Deal
The acquisition of the flight control unit would be a major boost for Safran. The company would gain access to a range of products and technologies, as well as a foothold in the North American market.
The deal would also be beneficial for Raytheon, as it would allow the company to focus on its core defense and aerospace businesses. The divestment of the flight control unit would also help the company streamline its operations and reduce costs.
Outlook
The potential deal is still in the early stages of negotiations, and it is unclear when or if it will be finalized. If the deal is completed, it would be a major boost for Safran and a major step forward for Raytheon.