Dubai Aerospace pulls out of $1.8b Auckland bid
Dubai Aerospace Enterprise (DAE) announced that it has abandoned its $1.8 billion bid for a majority stake in Auckland International Airport after mounting opposition to the acquisition in New Zealand and a legal wrangle over higher airport landing charges, Khaleej Times reported.
The Dubai-based company said in a statement that Auckland International Airport Limited (AIAL) and DAE have determined that they have no alternative but to terminate the Merger Implementation Agreement (MIA) on a mutually acceptable basis, including that each party bears its own costs.
DAE, which planned to take between 51 percent and 60 per cent in New Zealand's largest airport, decided to terminate the deal following moves by Air New Zealand to legally challenge the airport's five-year plan to raise landing fees put the deal into question.
Aviation industry analysts described the withdrawal as one of the first setbacks suffered by DAE as the state-owned group seeks to build a global presence for the emirate of Dubai in the aerospace industry.
The Dubai-based company said in a statement that Auckland International Airport Limited (AIAL) and DAE have determined that they have no alternative but to terminate the Merger Implementation Agreement (MIA) on a mutually acceptable basis, including that each party bears its own costs.
DAE, which planned to take between 51 percent and 60 per cent in New Zealand's largest airport, decided to terminate the deal following moves by Air New Zealand to legally challenge the airport's five-year plan to raise landing fees put the deal into question.
Aviation industry analysts described the withdrawal as one of the first setbacks suffered by DAE as the state-owned group seeks to build a global presence for the emirate of Dubai in the aerospace industry.
Labels: DAE
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