The European Commission yesterday approved a new joint venture by investment fund Mubadala Development and British aircraft engine maker Rolls-Royce.
The Commission, competition watchdog of the 27-nation European Union, said in a statement that the venture to provide maintenance, repair and overhaul services for aircraft engines, would not raise competition concerns.
The deal has been cleared under merger rules as not interfering in fair competition in Europe.
The venture will provide services primarily in North Africa and the Middle East.
Rolls-Royce is joining forces with the Mubadala investment fund to set up a new joint venture to provide maintenance, repair and overhaul services for aircraft engines, primarily in North Africa and the Middle East.
Rolls-Royce said in July that the joint venture would serve the fast-expanding Middle East aviation services market. The mew company will provide aftermarket services for large commercial aircraft engines. A commission statement at the end of a routine merger inquiry said: "Rolls-Royce is active in the development, production and sale of civil aircraft engines, power systems for military aerospace, marine and energy applications, as well as associated after-sales services. Mubadala is an investment fund controlled by the Emirate of Abu Dhabi in the United Arab Emirates.
"The commission's investigation found that the parties' activities overlapped to a limited extent in the markets for the maintenance of aircraft engines where Mubadala's subsidiaries are active.
"However, for the bulk of their maintenance services, Rolls-Royce and Mubadala's subsidiaries are not direct competitors, as they service different engines. The commission thus concluded that the proposed transaction would not raise competition concerns."