France's Snecma is tipped to purchase Fiat's aeronautics business Fiat Avio – one of the carmaker's pivotal disposals in its restructuring plan.

According to today's Financial Times, talks for the sale of the business, which should raise around £1bn, are well advanced with the French company, although private equity fund Carlyle and one other investment group remain in the race.

Fiat had initially been reluctant to sell its aeronautics division because of its strong cashflow and steady profitability – but has bowed to creditor bank pressure.