SIA Engineering has ended talks on the proposed purchase of Lockheed Martin's 25% stake in Guangzhou Aircraft Maintenance Engineering (GAMECO) after one of the Chinese heavy maintenance company's two other shareholders failed to endorse the deal.
The Singapore Airlines subsidiary says: "As consent of one GAMECO shareholder has not been secured, SIA Engineering has terminated the conditional agreement with Lockheed Martin to acquire its stake."
Lockheed Martin's two other partners in GAMECO are China Southern Airlines, which holds 50%, and Hong Kong conglomerate Hutchison Whampoa (China), which holds 25%.
In April, Flight International revealed that Lockheed Martin was in discussions to sell its 25% stake in GAMECO, which is a major maintenance, repair and overhaul service provider in the Asia-Pacific region.
Source: Flight International