China's Xi'an Aircraft acquires FACC
SHANGHAI (AFP) Chinese plane maker Xi'an Aircraft Industry (Group) Company has purchased a majority stake in Austrian aircraft parts maker Future Advanced Composite Components AG, the companies said.
Xi'an Aircraft and Hong Kong-based private equity firm Advanced Treasure Limited gained a combined 91.25 percent stake in FACC, according to statements released late Thursday.
China's state-run Xinhua news agency called it "the first time a European aerospace manufacturing company was acquired by an Asian aerospace manufacturing company."
Xi'an Aircraft, a subsidiary of state-owned Aviation Industry Corporation of China (AVIC), holds 90 percent of the combined stake and ATL holds 10 percent, according to the statements.
The terms of the purchase were not disclosed.
The acquisition is part of the Chinese plane-maker's strategy to "build a group with international influence and competitiveness," Lin Zuomin, president of AVIC, said in the statement.
The Chinese group will inject at least 40 million euros (58 million dollars) in fresh capital into FACC, a supplier to large aircraft manufacturers such as Airbus, Boeing and Bombardier, FACC said.