Aviorsquos AeroEngine division supplies GE Aviation with components for turbofan engines including the GEnx one of two engines selected by Boeing for its 787 Dreamliner and 7478 cargo jets as well as turboshaft engines for smaller engine families After providing assurance that it will ensure competitive supply of parts to rival aero engine builders GE appears set to complete the purchase

GE Cleared to Complete Avio Takeover

July 21, 2013
Boosts GE Aviation's jet propulsion biz Avio produces low-pressure turbines, gearboxes, etc. Improves GE supply chain

General Electric now has Federal Trade Commission and European Commission clearance to proceed with the $4.3-billion takeover of Avio S.p.A.’s AeroEngine division, announced last year. Avio manufactures low-pressure turbine systems, accessory gearboxes, geared systems, combustors, and other components for aerospace engines.

Avio has operations worldwide, and has supplied components to GE Aviation for nearly 30 years, and has content on engines including the GE90 and GEnx turbofan engines for commercial aircraft, as well as the CT7/T700 turboshaft engine family for civil and military helicopters. Avio also supplies other aerospace engine manufacturers.

GE has said the acquisition of Avio's aviation business, which provides components for GE Aviation and other engine companies, would further GE's participation in jet propulsion, one of the most attractive sectors of the aviation industry.

Avio will strengthen GE's global supply chain, and the buyer stated Avio and its customers would benefit from GE's investments to expand Avio's products and services.

The FTC had challenged the acquisition on the ground that it would be “anticompetitive,” but a proposed settlement would prevent General Electric from interfering with the development of an accessory gearbox that Avio designed for GE rival Pratt & Whitney’s PW1100G engine.

The agency announced the settlement resolves its challenge.

Earlier, the European Commission withdrew objections to the takeover after GE committed to ensure that strategic information relating to the Eurojet consortium (supplier of jet fighters for several EU nations) would be protected, and remain competitive.

"We look forward to Avio joining the GE family," GE Aviation president and CEO David Joyce, said in December. "We have worked closely with Avio for decades, and we anticipate a bright future together. This acquisition is a great strategic fit with our existing portfolio."

About the Author

Robert Brooks | Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries. His work has covered a wide range of topics, including process technology, resource development, material selection, product design, workforce development, and industrial market strategies, among others. Currently, he specializes in subjects related to metal component and product design, development, and manufacturing — including castings, forgings, machined parts, and fabrications.

Brooks is a graduate of Kenyon College (B.A. English, Political Science) and Emory University (M.A. English.)

Latest from News