AVIC acquires Cirrus Industries; GKN and Meggitt positive about outlook
China Aviation Industry General Aircraft Co Ltd, a subsidiary of Aviation Industry Corp of China (AVIC), stated it would acquire a 100% stake in Cirrus Industries Inc. This marks the first time a Chinese company has acquired an aircraft manufacturer from a developed country.
The transaction is set to close in Apr-2011 following the receipt of necessary approvals from the Chinese Government and the US Committee on Foreign Investment. The companies did not disclose the value of the deal. Another AVIC subsidiary, CATIC Beijing Co Ltd, last week acquired 20% in KHD Humboldt Wedag International AG for EUR45 million, becoming the largest shareholder in the German company.
Shares in AviChina fell 3.9% yesterday.
Elsewhere, the CEO's of Meggitt and GKN Aerospace have expressed confidence in the outlook for the aerospace manufacturing industry, thanks to the production increases by Airbus and Boeing and the new models being introduced by major aircraft manufacturers, such as the B787, A350 and CSeries.
Shares in GKN Aerospace were down 4% yesterday, while Meggitt shares rose 4%.
Selected Aerospace daily share price movements (% change): 01-Mar-2011