Business: Lucas gains edge in European circles.
Lucas Aerospace, based at Shirley, said yesterday that it had finalised the buy-out of Pierburg Luftfahrtgerate Union of Neuss.
TRW Aeronautical Systems which owns Lucas Aerospace has had a 34 per cent share in PLU since 1970 and this was increased to 40 per cent in 1990.
Details on the purchase of the remaining 60 per cent of PLU for an undisclosed sum follows the recent acquisition of SAMM a French aeronautics company.
The deal is for the aviation part of PLU which designs and manufactures fuel control systems and components for aircraft engines.
The company, which has 250 employees, also provides repair and overhaul services in the aftermarket for European air forces.
During last year PLU aviation sales had a turnover of pounds 20 million.
A sector of PLU, which makes parts for the automotive market, was split from PLU and retained in Kolbenschmidt Pierburg, PLU's former controlling company.
Mr Ken Maciver, executive vice-president and general manager of TRW Aeronautical Systems, Lucas Aerospace, said last night: "The PLU deal reinforces our position in the aerospace engine systems market while the SAMM acqusition has moved TRW Aeronautical Systems to the number one position in flight control actuation."
He said the acquisitions supported a strategy of retaining Lucas Aerospace's leadership position as the aerospace industry consolidated.
Alstom Engines has taken a controlling interest in an Indian diesel generating set manufacturer.
Permission was given by the Indian Foreign Investment Promotion Board for Alstom Engines to take the 51.47 per cent stake in Modi Mirrless Blackstone.
Alstom's transport sector has a train making plant at Washwood Heath, Birmingham, which is unaffected by the takeover.
Alstom Engines operations in the UK are at Newton-le-Willows on Merseyside, Stockport, Colchester and Stamford in Lincolnshire.
Alstom will further raise its stake in Modi Mirrless to 75 per cent plus one share in the second stage through the acquisition of Modi Rubber shares, besides those allotted on a preferential basis.
Under a share purchase agreement, Alstom will buy 1.841 million shares from the Modi-family controlled companies, 1.556 million shares from other shareholders, and 2.7 million shares from the Commonwealth Development Corporation.