Mubadala Aerospace explores acquisitions in North America

Abu Dhabi investment arm eyes global aerospace expansion.

Mubadala Aerospace, part of Abu-Dhabi based Mubadala Development Company, is exploring options for acquisition in North America's Maintenance, Repair and Overhaul (MRO) space, a senior company official said yesterday.

"We are looking at expansion in North America, Asia Pacific, Europe and Middle East. Greenfield project may not be possible in North Amercia, so we could go for an acquisition while in markets like India we may explore greenfield projects," said Homaid Al Shemmari, Mubadala's Associate Director Business Development.

Al Shemmari, however, did not elaborate on the kind of acquisition or the range of investments that would go into the project.

Mubadala had made headlines some time back when Al Shemmari had stated that the company was looking to build an aircraft in Abu Dhabi by 2018.

When asked about the plans, he said: "Our acquisition in Piaggio will help us achieve our set target. The Piaggio platform would be used for the project."

Mubadala Development, a wholly owned investment vehicle of the Abu Dhabi government, had purchased 35 per cent stake in Italian business aircraft manufacturer and subcontractor Piaggio Aero Industries in 2006.

The company is now looking at expansion in the MRO space and expects to garner a substantial stake in the sector with a bouquet of services offered by the company.

"Our company is a one-stop solution where we offer anything from supply chain solutions to finance for our clients," he said.

On the growth of MRO in the region, Al Shemmari said: "In next 10 years there would be a100 percent growth in the region. From the present $2.3 billion the size of the market will increase to $4.8 billion by 2020."

Mubadala in past two years has made some important investments in the aerospace. Apart from Piaggio, Mubadala holds a majority stake in Swiss maintenance, repair and overhaul specialist SR Technics, wholly owns local MRO house Abu Dhabi Aircraft Technologies and Al Ain based Horizon Flight Academy. The company has also attracted attention from global players in defence sector. Recently published media reports suggest that BAE Systems, a leading global defence, security and aerospace company, is in talks with Mubadala to explore the possibilities of partnerships.

Mubadala Aerospace had signed a $ 100 million financing deal for 12 spare engines with Air Berlin, a German carrier through its Sanad Aero Solutions subsidiary.

 

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