Malaysia Aviation Group (MAG) has signed a Sale and Purchase Agreement (SPA) with Airbus to acquire Sepang Aircraft Engineering (SAE), a wholly owned subsidiary of the Airbus Group, the company said on Thursday.

MAG described the proposed acquisition as a strategic milestone under its Long-Term Business Plan 3.0 (LTBP 3.0). It said the deal supports its plan to strengthen engineering and maintenance capabilities, expand its integrated aviation services portfolio, and accelerate growth in third-party revenue.

The release did not disclose the value of the transaction.

MAG President and Group Chief Executive Officer Captain Nasaruddin A. Bakar said, "It has been a challenging year for the aviation industry", citing a changing global environment and volatile fuel prices that have put pressure on the sector.

He said MAG is focusing on disciplined investments in areas with a clear route to sustainable value, and that the acquisition reflects this approach.

According to Nasaruddin, the deal builds on MAG's existing engineering and maintenance base and positions the group to tap the growing maintenance, repair, and overhaul (MRO) market and rising third-party demand.

He said SAE would complement the existing capabilities of MAB Engineering through its A320 expertise, a dedicated paint hangar, and specialised component repair services. These strengths would allow MAG to offer a broader range of MRO solutions to existing and new third-party customers in ASEAN and beyond, he said.

Nasaruddin added that MAG is using Malaysia's competitive cost-to-skill advantage and established engineering expertise to support the country's ambition to become a leading regional aerospace hub.

The transaction remains subject to customary conditions precedent, including approval from the Civil Aviation Authority of Malaysia (CAAM). MAG said it will work with SAE, CAAM, and other stakeholders to secure the approvals, with completion targeted for 2027.

Source: PR