According to a report in The Financial Times, an agreement has been reached following negotiations between the US company and the private equity owners of the Italian group.
Avio, which had €2bn in sales last year, builds engines and engine parts for aircraft and counts Rolls Royce and GE. The company already does two-thirds of its business with GE.
The deal comes after months of speculation as the industrial giant has looked to court the Italian supplier, 81% of which is currently owned by private equity group Cinven.
There has been increasing speculation that the Italian government [pictured] would step in with regards Avio, being reluctant to let it fall into foreign hands.
Image by caribb, CC Flickr.com
