U.K. Trade Minister Declines To Refer GE, Smiths Deal To Competition Commission

Defense Daily, April 16, 2007

Britain's Trade Minister Ian McCartney last Friday said he would accept a proposal by General Electric [GE] and Smiths Group to protect classified information and technology, as well as the strategic capabilities Smiths has in weapons platforms for the United Kingdom, rather than refer the pending merger between GE and Smiths Aerospace to the Competition Commission.

The Competition Commission is an independent body which conducts in-depth reviews into mergers.

"I am proposing to accept from General Electric and Smiths Aerospace Group Limited certain behavioral undertakings to ensure the protection of classified technology and information, and the maintenance of UK strategic capability in those important weapons platforms identified," McCartney said in a statement.

Public comments on the purchase of Smiths Aerospace by GE will be accepted until April 25.

"The Ministry of Defence has advised that this merger raises national security issues relating to the confidentiality of sensitive information and to the maintenance of strategic capabilities in relation to a number of important current and future weapons platforms," McCartney said.

GE announced its proposed $4.8 billion acquisition of Smiths Aerospace in January (Defense Daily, Jan. 17).

[Copyright 2006 Access Intelligence, LLC. All rights reserved.]

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