LONDON, June 30 (UPI) -- BAE Systems and its Saudi Arabian business partner Riyadh Wings are enhancing their interests and forming a holding company to be called OMC.
The reorganization will involve "a number of transactions" that will lead BAE Systems and Riyadh Wings Aviation Academy to bring together their interests in local companies that specializing in training, electronics and IT systems engineering.
BAE Systems will be the majority stakeholder in OMC but Riyadh Wings will eventually acquire a 49 percent interest in the holding company.
"BAE Systems is a longstanding partner of the Kingdom of Saudi Arabia, with an ongoing commitment to support the national agenda of developing an indigenous defense industry, supporting skills and technology development and increasing local employment," BAE Systems plc Chief Executive Officer Ian King said in announcing the deal. "BAE Systems has worked successfully with Riyadh Wings for a number of years and they are well placed to partner with us in aviation-related activities.
"This enhancement of our relationship with our valued partner demonstrates the continued commitment to increase Saudi participation in our business in support of stated Saudi national priorities."
OMC will have a 98 percent interest in local companies Saudi Development and Training, a technical training organization; a 50 percent interest in electronics firm Advanced Electronics Company, which serves Saudi Arabia's defense, telecommunications and manufacturing business areas; and a 90.6 percent interest in International Systems Engineering.
BAE said the enhancement and reorganization plan is subject to certain regulatory approvals but no expected completion date was given.