Dubai's DAE ends tie-up talks with BBA Aviation
DUBAI (Reuters) - Dubai Aerospace Enterprise (DAE), owner of U.S.-based engine repair and maintenance business StandardAero, said on Sunday it was no longer in talks with British aircraft services firm BBA Aviation BBA.L to merge parts of its business.
The two firms had said in late August that they had started talks to merge some of their assets, after media reports said that BBA was looking at a 2.7 billion pound ($4.2 billion) tie-up with Arizona-based StandardAero.
"Dubai Aerospace Enterprise announced today it is no longer in discussions with BBA Aviation about a potential combination of certain parts of its business," DAE said in an emailed statement.
DAE, which specializes in aircraft maintenance and leasing, gave no further details on why the discussions had ended.
A source with direct knowledge of the matter said there was no formal sale process in place yet for StandardAero.
"BBA had made a preliminary approach and discussions were at an early stage. Obviously the asset is for sale but the price has to be right for both the parties," said the source.
After ordering more than 200 aircraft during an industry boom in 2007, DAE's leasing unit has been forced to cancel orders. In 2011, it canceled outstanding Airbus orders worth $5.8 billion and also canceled orders for 35 Boeing 737s.
The Dubai-government owned firm put StandardAero up for sale in 2010 and retained Deutsche Bank (DBKGn.DE: Quote) to advise on the sale, Reuters reported at the time. However, the process moved slowly.
"As of now there are no banks or advisors assisting on a sale for StandardAero. The sale discussions have not reached a material stage with any party for that to happen," the source added.
(Reporting by Praveen Menon and Dinesh Nair; Editing by Mirna Sleiman and William Hardy)
© Thomson Reuters 2017 All rights reserved.