MAINBOARD-LISTED Singapore Technologies Engineering has been allowed to buy a maker of critical aeroplane engine parts from the United States’ General Electric, it disclosed on Sunday.
Its US subsidiary Vision Technologies Aerospace Incorporated obtained clearance from a US government committee to buy Maryland-based engine nacelle systems manufacturer MRA Systems, ST Engineering said. Now, as long as the rest of the conditions for the acquisition are completed or waived, the US$630 million deal - which is expected to be earnings-accretive - should close in the coming week, added ST Engineering, which is 51 per cent-owned by national investment firm Temasek Holdings.
MRA Systems holds single-source contracts for both mature and next-generation nacelle programmes, including engines for Airbus’ A320neo - the aircraft model that reportedly pushed US competitor Boeing to rush through the development of its ill-fated 737 Max planes.ST Engineering previously said that the acquisition would scale up its aerospace capabilities by moving it into the original equipment manufacture of high-value nacelle parts, in a hunt for new growth areas to invest in.