BBA Aviation Falls as Talks to Combine With Dubai Aerospace End
BBA, which said Aug. 26 it was in talks with Dubai Aerospace to combine certain parts of the business, did not give a reason why the discussions had ceased. Shares in BBA Aviation, which had risen about 3.8 percent since the merger plans were trading 1.7 percent lower at 313.40 pence in London today, valuing the business at 1.5 billion pounds ($2.4 billion).
DAE, which was set up in 2006 with the aim of becoming one of the world’s biggest aircraft lessors, said in a statement yesterday talks were no longer active on a transaction that would have given it a large stake in BBA Aviation. The Dubai-based company dropped most of its aircraft purchases since its finances weakened in the global recession.
The Sunday Times reported last month that BBA was in talks to purchase its U.S. rival Standard Aero and that DAE, which owns the Arizona-based engine repair and maintenance business, may take a stake in the enlarged business. Such a transaction would value the combined business at 2.7 billion pounds and Standard Aero at 1.3 billion pounds, the newspaper said.
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