MARCH 10, 2014 — Rolls-Royce is to acquire Daimler AG's 50% shareholding in Rolls-Royce Power Systems (RRPS). The company, whose brands include MTU, previously operated as Tognum AG and is headquartered in Friedrichshafen, Germany. It employs around 11,000 people.
Rolls-Royce said it welcomed the decision by the Board of Management of Daimler AG to exercise the put option relating to its holding. It says the option, which is subject to a formal valuation process, was valued at £1.9 billion on the Rolls-Royce balance sheet at Dec 31, 2013 and that it has ample liquidity to fund the purchase.
John Rishton, CEO of Rolls-Royce said: "Rolls-Royce Power Systems has added scale and capability to our reciprocating engines business. It has outstanding technology, operates in long term growth markets and has proved a valuable addition to our Marine and Industrial Power Systems division."
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG said: "After the very successful cooperation with Rolls-Royce and the positive development of RRPS, we are now taking the next logical step and are transferring our shares to our joint-venture partner. All parties involved will benefit from this move, especially RRPS and its workforce."
This transaction is expected to complete within the next six months and is subject to the usual regulatory approvals.