Oxfordshire’s Reaction Engines in talks with Whitehall on rescue deal – reports
Aerospace manufacturer Reaction Engines is in talks with Whitehall about a potential cash injection from the UAE, Sky News has reported.
The Oxfordshire-based firm has apparently been negotiating a deal for several weeks with the Strategic Development Fund (SDF) – the investment arm of the UAE’s Tawazun Council.
With mounting losses and slow revenue growth this past year, Reaction Engines is keen to secure a £20 million lifeline to avoid collapse.
Recent discussions with government officials have reportedly concerned the sensitive defence and security implications of its aviation cooling technology, which has potential applications across a range of existing and future military aircraft.
The company would require formal clearance under the National Security and Investment Act to go through with a deal, which could also involve investment from BAE Systems.
Meanwhile, accountancy firm PwC is ready to step in as administrator should the transaction fall through.
Read more of our coverage – Could Oxfordshire's Reaction Engines be rescued by UAE?
