Defence giants challenge Italy’s national security deal block
In this article by Charles McConnel, published last 16 January, Global Competition Review revisits the Safran case and the blockage of the purchase of Microtecnica by the Italian Government after invoking the Golden power rules.
RTX and Safran have officially appealed against the Italian government’s decision to block Safran’s $1.8 billion acquisition of CollinsAerospace’s Italian subsidiary, Microtecnica. The defense companies filed a motion before the Administrative Court of Rome, emphasizing that the appeal is a legal step under the merger agreement.
The Italian government, using its “golden power” rules, had prohibited the sale last November, citing concerns about domestic defense production lines. Our Partner Filippo Mazza, again interviewed on this topic suggests that the appeal aims to reopen discussions with the government to seek a solution.
According to him: “it is difficult to assess the legal merit of the deal block and the companies’ challenge, since the golden power rules afford the government broad discretion. However, the government’s decisions are often driven by geopolitical concerns that may not stand before a court of law, especially when applied toward “allied” countries”.
What do RTX and Safran think about it? And what will happen now?
We invite you to delve into the complete article (*only for subscribers*): https://globalcompetitionreview.com/gcr-fic/article/defence-giants-challenge-italys-national-security-deal-block#:~:text=RTX%20and%20Safran%20have%20appealed,Collins%20Aerospace’s%20Italian%20subsidiary%20Microtecnica.