Commission Decision No. 04-M-002/2017: Acquisition by Rockwell Collins, Inc. of B/E Aerospace, Inc.
Rockwell Collins, Inc. (“Rockwell”) is a manufacturer and supplier of aviation and integrated solutions for both commercial and government applications. Its principal products include flight deck avionics, cabin electronics, mission communications, simulation and training, and information management systems. B/E Aerospace, Inc. (“B/E”) is a manufacturer and supplier of aircraft cabin interior products, including cabin seating, lighting, oxygen systems, food and beverage preparation and storage equipment, galleys and lavatories. B/E has a branch in the Philippines operating a manufacturing plant in Tanauan, Batangas.
A newly created direct or indirect subsidiary of Rockwell, Quarterback Merger Sub Corp., will merge with and into B/E, with B/E surviving the merger as a direct or indirect subsidiary of Rockwell.
COMMISSION DECISION No. 04-M-002/2017
Acquisition by Rockwell Collins, Inc. of B/E Aerospace, Inc.
Having regard to the Acquisition by Rockwell Collins, Inc. of B/E Aerospace, Inc.,
Having regard to Section 16 and 20 of Republic Act No. 10667 and Section 1, Rule 4 of the Rules and Regulations to Implement the Provisions of Republic Act No. 10667,
Has adopted this Decision:
In view of the recommendation from the Mergers & Acquisition Office that, on the basis of information obtained from the parties and other sources to date, the acquisition by Rockwell Collins, Inc. of B/E Aerospace, Inc. (the “Transaction”) does not result in substantial lessening of competition in the relevant market, for the following reasons:
1. No overlap exists between the parties’ products in the Philippines;
2. The merged firm does not have the ability to engage in foreclosure, post-acquisition, in any of their identified vertical and complementary products; and
3. Sufficient post-acquisition competitive constraints on the merged firm remains from other market participants;
the Commission hereby resolves that it will take no further action with respect to the Transaction.
DONE, this 13th day of March 2017, in the City of Pasig, Philippines.
ARSENIO M. BALISACAN
JOHANNES BENJAMIN R. BERNABE STELLA LUZ A. QUIMBO
(on leave) (on official travel)
EL CID R. BUTUYAN AMABELLE C. ASUNCION
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