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China Daily Website

Chinese real estate firm to buy US aircraft builder

Updated: 2013-10-09 20:48
( chinadaily.com.cn)

Meijing Group, a real estate company in Henan province, is set to purchase Texas-based Mooney Airplane Co Inc, in an acquisition already approved by the US government, China Business News reported on Wednesday.

The transaction is due to be completed in November, although the total value of the deal has not been released.

Moony, a US manufacture of single-engined general aviation aircraft, which was started in 1929, is out of production and looking for investors.

"Lack of investment in new production is a major problem for Moony, but it has mature technology for building aircraft," said Zhou Tailai, chief analyst from Flying-Dream (Shanghai) General Aviation Consulting Co Ltd.

Zhou said Meijing Group thinks highly of China's general aviation industry and the acquisition is a good way for the group to gain position in the industry.

"The group may move Moony's production line to China in order to reduce the costs," he added.

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