EU approves Rolls-Royce joint venture
A new business link between aircraft engines maker Rolls-Royce and an investment fund based in the United Arab Emirates was approved by the European Commission today.
The deal was cleared under merger rules as not interfering in fair competition in Europe.
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.
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.”
