Dubai Aerospace Engineering confirmed it is in talks with BBA Aviation over combining parts of their operations.
DAE in tie-up talks with BBA Aviation
Dubai Aerospace Engineering (DAE) confirmed it is in talks with BBA Aviation over combining parts of their operations.
The government-controlled DAE said yesterday that it was "in preliminary discussions with BBA Aviation regarding a potential combination of certain parts of its business".
"There are no other details on this matter at this time," it added.
The statement follows a report by The Sunday Times that the largest provider of bases for business jets, is looking to acquire an American rival Standard Aero.
DAE, which owns the Arizona-based company, could take a stake in the combined repair and maintenance business, the paper said.
The proposed transaction would value the new entity at £2.7 billion (Dh15.47bn), and Standard Aero at £1.3bn, the paper added.
DAE was set up in 2006 with the aim of supporting the growth of Dubai as an aerospace hub, and establish the emirate in the aircraft leasing business.
In the wake of the 2008 financial crisis, it scaled back its investment. Of the 100 planes it ordered at the 2007 Dubai Airshow, DAE cancelled 45 Airbus planes valued at US$5.8bn. The Dubai company operates on four continents, and employs around 3,700 people.
Last year, it generated a net profit of US$110 million on revenue of almost $2bn. BBA, which is listed on the London Stock Exchange, is valued at around £1.5bn.
It is on the acquisition trail after healthy financial results this year.
The company recently announced the purchase of Jet Systems, an airport operator in the United States, for $38m. Its pretax profit in the first half of the year rose by 14 per cent to $78m.