MTU raises IAE stake after Rolls-Royce closes sale to P&W

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International Aero Engines partner MTU has boosted its stake in the consortium that makes the V2500 engine for Airbus A320s from 11% to 16%, following the formal close this morning of Rolls-Royce's sale of its 32.5% stake to Pratt & Whitney.

The deal between R-R and P&W, announced in October 2011, envisaged such an increased commitment from MTU, whose extra shareholding was carved out of the R-R stake bought by P&W for $1.5 billion.

According to MTU, its production volume will hold steady despite taking on responsibility for an additional 500 or so components. These extra parts will be procured from suppliers, with responsibility handled by MTU's Polish operation.