In a joint statement the companies said the deal would complete in five months, subject to regulatory approval, and the price reflected the stake’s fair market value.
Last month Rolls announced that it would take full ownership of RRPS after Daimler decided to exercise a “put” option that had been agreed when the companies bought the business in 2011 as a joint venture. At that time they agreed to jointly purchase the German industrial-engine producer Tognum for €3.4bn and renamed it RRPS.
RRPS, which is headquartered in Southern Germany and employs roughly 11,000 people worldwide, manufactures high-speed diesel engines for the marine, energy and defence industries.
John Rishton, chief executive of Rolls-Royce said the agreement represented “a good outcome” for both companies.
“Rolls-Royce Power Systems has added scale and capability to our reciprocating engines business. It has world class technology, operates in long term growth markets and has proved a valuable addition to our Marine and Industrial Power Systems division,” he added.
Despite selling their stake, Wolfgang Bernhard, Daimler’s board member for trucks and buses, said that irrespective of the ownership structure, the company would “keep connections to RRPS “based on our existing supplier relationship”.
more
{ 0 comments... » Rolls to pay €2.43bn for Daimler's 50pc stake in RRPS read them below or add one }
Post a Comment