GE Electric Co announced that they have reached an agreement with the United States Federal Trade Commission. The agreement will allow GE Electric Co. to continue with its US4.3 billion acquisition of Avio SpA's aviation business. The settlement entails that GE will refrain from interfering with any development for engine components developed by rival Pratt & Whitney.
Avio's AeroEngine unit designs an accessory gearbox for the rival aircraft engine maker Pratt & Whitney's PW1100G engine. The FTC commented that the GE's acquisition will give "the ability and incentive to disrupt the design and certification" as it pertains to the gearbox made for the engine. The gearbox is used on the Pratt & Whitney A320neo aircraft.
The US Federal Trade Commission released a statement saying, "This would diminish competition in the sale of engines for the A320neo, which would result in higher prices, reduced quality, and engine delivery delays for A320neo customers."
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