Beginning as a holding company for government assets in 2018, the Abu Dhabi sovereign wealth fund ADQ has been streamlining its portfolio, privatizing some assets, and undertaking tactical acquisitions. Now, ADQ has proposed to acquire a controlling interest in Abu Dhabi Aviation (ADA) and combine the helicopter operator with ADQ stakes in Etihad Engineering, and GAL to create a “globally competitive aviation business” with approximately $2.56 billion in assets, according to a Reuters report.

As per the deal, ADQ would hold about 59% of ADA’s total issued share capital.

ADQ will combine ADA with its 100% stock in Etihad Engineering, its 50% stake in the aviation services company GAL under the administration of Abu Dhabi, and its 100% ownership in Etihad Engineering’s Advanced Military Maintenance Repair and Overhaul Center (AMMROC).

When the deal is complete, ADA—which is 30% owned by Mubadala, another Abu Dhabi wealth fund—would issue a convertible instrument to ADQ that would, in turn, convert into about 652 million shares of ADA, according to the report.

Chief Executive Officer of ADQ Mohamed al-Suwaidi said in a statement that the agreement would “further position Abu Dhabi as a world-leading center of aviation expertise” and establish an “industry champion.”

As per ADQ, the merger would need shareholder and regulatory clearances if ADA’s board approves it.