BAE SYSTEMS has acquired the world’s largest aircraft engine maker’s aircraft engines and parts, including engines for the Boeing 737 MAX, 737 MAXI and 737 MAX family of aircraft.
The deal, which is expected to close in the fourth quarter of 2020, is subject to regulatory approvals and will benefit BAE from its global footprint.
Boeing aircraft engine manufacturer Rolls-Royce said in a statement on Thursday that the deal would help BAE expand its core aviation business and support future engine development efforts.
The company has a strong and stable pipeline of engine components for its 737 MAX and 737MAXI aircraft and it also provides a wide range of parts for Boeing 737 aircraft including engines, wings and propellers.BAE Systems said it will continue to operate a large number of its global engines operations and work closely with Boeing on engine and turbine development.
Rolls-Rand’s acquisition of BAE has been widely anticipated since the end of the global financial crisis in 2008.
Rolls’ parent company Rolls-Nord would have owned half of Bae’s remaining shares had it gone through with the acquisition.
BAE’s current stock price is $26.75 per share, down from a high of $35.25 in October last year.
Beesons BAE Group, which also has aircraft engines for both 737 MAX planes and 737Max aircraft, will continue its work on engine technology and development, the company said.
Rolls has a long and strong relationship with BAE that dates back to the late 1990s and early 2000s.