Business jet services firm BBA Aviation has confirmed it is working on a merger deal in a move reportedly set to create a company worth £2.7 billion.
The UK-based company said it is in early stage talks over a combination with certain parts of Dubai Aerospace Enterprise (DAE) - thought to relate to its A rizona-based engine repair and maintenance business Standard Aero.
BBA, which dates back to 1879, i s valued at around £1.4 billion and specialises in providing aircraft services such as refuelling, baggage handling, aircraft cleaning and de-icing
The firm was founded in Scotland, but is now based in London and has 12,000 staff across Europe, the US and South America.
It is thought DAE has put a £1.3 billion price tag on Standard Aero, which has a 4,000-strong workforce and a client roster including engine and aircraft makers such as Rolls-Royce and Bombardier.
DAE would reportedly take a significant stake in the enlarged business.
The deal would further boost BBA's presence in America, where it already generates three quarters of group revenues.
As part of general moves to expand in the US, it also separately announced that its Signature Flight Support business had agreed to buy Maguire Aviation Group at Van Nuys Airport in Los Angeles, California, for 69 million US dollars (£44 million).
BBA grew profits by 14% to 63.2 million dollars (£40.7 million) in the first six months of the year on turnover 2% higher at 1.1 billion dollars (£709 million).
The group's shares have had a recent strong run, leaping more than 60% over the past year.
BBA first began as a small industrial belting works in Dundee, Scotland, and counted clients including Henry Ford.
It made its first major move into aviation with the acquisition of UK-based landing gear and hydraulics business APPH in 1986, when it also bought a similar business in the US.