CLEVELAND, Dec. 7 (UPI) -- TransDigm's plan to purchase the assets of a Goodrich Corp. business has been scrapped following objections from the U.S. Justice Department.
The companies announced in October that the pump and engine control systems business of Goodrich, a subsidiary of United Technologies Corp., would be purchased by TransDigm for $236 million in cash.
"The termination follows notice by the Department of Justice that it objected to the transaction," the TransDigm Group, parent company of TransDigm Incorporated," said.
"Under a consent agreement between UTC and the Department of Justice, approval of the Department of Justice of the transaction was required and was in the Department of Justice's sole discretion."
Added W. Nicholas Howley, chairman and chief executive officer of the TransDigm Group: "The consent agreement between UTC and the Department of Justice, which provided the Department of Justice the right to approve the acquirer of GPECS in its sole discretion, made this an unusual situation and process. We do not believe that this will impact future acquisitions."
Details about the objections of the Justice Department weren't disclosed.
