Singapore Technologies Engineering (ST Engineering) is close to completing the acquisition of aerostructures and nacelle systems manufacturer Middle River Aircraft Systems (MRAS) after receiving a key US approval.

The company obtained the clearance from the Committee on Foreign Investment in the US (CFIUS) for the acquisition.

With the approval, ST Engineering has received all applicable regulatory approvals for the transaction.

First announced last September, the $440m agreement will see ST Engineering subsidiary Vision Technologies Aerospace (VT Aerospace) purchase all MRAS shares from General Electric Company.

MRAS is an original equipment manufacturer (OEM) of engine nacelle systems for both narrow-body and wide-body aircraft. A nacelle is a streamlined casing that houses engines or other equipment in an aircraft.

“With the approval, ST Engineering has received all applicable regulatory approvals for the transaction.”

The company has 800 employees and is involved in two principal business lines.

One unit specialises in the design, development, production and sale of nacelles, thrust reversers and aerostructures, while the other oversees spare parts sales.

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The acquisition is expected to enable ST Engineering to enhance its aerospace capabilities by entering the OEM business of high-value nacelle components and replacement parts.

At the time of announcing the transaction, the company stated that MRAS is a strong fit for its strategy of investing in businesses that offer competitive products and are ‘synergistic’ to its core businesses.

The firm noted that the completion of the proposed acquisition is subject to the satisfaction of the remaining conditions, and expected to take place this week.

ST Engineering specialises in the aerospace, electronics, land systems and marine sectors.