Rolls-Royce and Daimler bid ¤3.2bn for Tognum
Thursday 10 March 2011
The engineering giant Rolls-Royce and the German car group Daimler are offering €3.2bn (£2.7bn) for the engine-maker Tognum.
If the deal goes ahead, it will create a joint venture – including Rolls-Royce's Bergen engine business and Daimler's existing 28 per cent stake in Tognum – which will be listed on the Frankfurt Stock Exchange, the two companies said.
The €24-per-share offer to Tognum investors represents a 30 per cent premium on the stock price on the last trading day before rumours of a potential bid reached the markets at the start of this week. But some analysts expect Rolls-Royce and Daimler will have to increase their offer to secure the sale.
Tognum specialises in engines and propulsion systems for ships, trains and industrial vehicles. Together with Bergen, the new joint venture will focus on fast-growing markets, particularly in developing countries, maintaining Tognum's existing manufacturing sites and securing future jobs, the two suitors said yesterday. Sir John Rose, the chief executive of Rolls-Royce, stressed the fit between the businesses.
"This is a significant opportunity to harness the innovation, technology and engineering expertise of Rolls-Royce, Daimler and Tognum," he said. "The complementary capabilities we are bringing together will provide us with a world-leading proposition, and will enable us to expand the business by developing a broader portfolio of integrated power systems and services for existing and new customers."
The Tognum joint venture would boost Rolls-Royce's already fast-growing presence in the marine sector. The division's revenues have grown at a compound annual rate of 21 per cent over the two decades since the company bought into the sector with the acquisition of Vickers. And at an investor meeting in November, John Paterson, the president of Rolls-Royce marine, forecast $340bn (£210bn) of opportunities over the next 20 years.
- 1 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 2 Dog thinks owner is drowning in lake, dives in and tries to pull him out
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
- 5 Phil Neville backtracks on Tomas Rosicky 'I'd smash him' comments from Match of the Day 2
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Greece elections: Greek PM Alexis Tsipras takes aim at 'neo-liberal' Europe as country gears up for prolonged austerity battle
Auschwitz liberation 70th anniversary: Woman sent to three Nazi death camps describes surviving gas chamber
Pornhub star Mia Khalifa receives death threats after being ranked the site's top adult actress
Prince Philip set to be knighted by Australia: Celebrate by reading his greatest gaffes
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
Leaked documents show Ukip leaders approve NHS privatisation once it becomes more 'acceptable to the electorate'
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...