We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 1 Feb 2018 08:10 AM

Font Size

- Aa +

Mubadala to go ahead with sale of Piaggio Aerospace unit - source

Sale will go as planned in accordance with terms set by the Italian government

Mubadala to go ahead with sale of Piaggio Aerospace unit - source
Piaggio Aero P.180 AVANTI II

Abu Dhabi's sovereign fund Mubadala is pressing ahead with the sale of a unit of Piaggio Aerospace following conditions set by the Italian government under its so-called "golden powers", a source familiar with the matter said on Wednesday.

Golden powers allow the government to veto or set conditions on asset sales or mergers deemed of strategic national importance.

In October, Rome used the powers over the sale of Piaggio Aerospace's executive P180 turbojet business to PAC Investments, a Chinese state-backed consortium, amid concerns over the transfer of sensitive technology and potential loss of jobs.

"The sale goes on as planned, according to the terms set by the Italian government, Mubadala has accepted them," the source told Reuters, adding it was up to the ministry of defence to make sure they would be met.

The investment of most of the sale's proceeds into Piaggio Aerospace's military unit and its full separation from its P180 arm, are among the conditions set by the government.

Mubadala said in December it would inject 255 million euros in Piaggio Aerospace as part of the company's five-year plan.

Piaggio Aerospace will also sell its Maintenance Repair and Overhaul (MRO) business and will evaluate potential partnerships for its P180 business.

Arabian Business: why we're going behind a paywall

For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.