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Tue 17 Feb 2009 03:28 PM

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EC okays Mubadala - Rolls Royce tie-up

Abu Dhabi investment co gets Rolls Royce venture approved by European Commission after long uncertainty.

Abu Dhabi investment company Mubadala has had its joint venture with Rolls Royce approved by the European Commission following months of uncertainty.

The partnership, which will see Mubadala and the UK aerospace company providing maintenance, repair and overhaul services for aircraft engines, was first announced last July.

Since then, the EC has scrutinised the joint venture to see whether it will contravene competition laws. But its ruling on Tuesday has given the joint venture, Abu Dhabi Aircraft Technologies, the green light.

An EC statement said: “The European Commission has approved under the EU Merger Regulation the proposed creation of a joint-venture between UK aircraft engine manufacturer Rolls-Royce and the United Arab Emirates-based investment fund Mubadala.   

“The Commission concluded that the transaction would not significantly impede effective competition within the European Economic Area (EEA) or a substantial part of it.”

No one from Mubadala or Rolls Royce was immediately available for comment following the ruling.

When announcing the joint venture last July, Homaid Al Shemmari, director of Mubadala Aerospace, said: “Our partnerships with world-class companies like Rolls-Royce are solidifying the creation of Abu Dhabi’s aerospace hub. Specifically, this joint venture will attract knowledge-intensive industries to Abu Dhabi.”

Meanwhile, Miles Cowdry, president of Services, at Rolls-Royce, said: “The Middle East is a rapidly-growing market, and the United Arab Emirates presents a major hub for airlines and aerospace activities within the region.

“The launch of this joint venture in Abu Dhabi extends our existing presence and close partnership with Mubadala.”

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