Rolls-Royce and Daimler eye Tognum engine-maker
Tuesday 08 March 2011
Rolls-Royce is in talks with Daimler about the possible acquisition of German engine-maker Tognum, the UK engineering giant said yesterday. The two companies are in "constructive discussions" over the plan for each to acquire equal stakes in Tognum, which is a leading supplier of engines and powertrains for ships, trains, and heavy industry.
The German car giant already owns nearly 29 per cent of Tognum, which is valued at nearly $3bn (£2.6bn).
Rolls-Royce yesterday refused to be drawn on its interest in the deal. But a tie-up with Tognum would be a boost to the company's global marine arm, which is one of its fastest-growing divisions.
Rolls-Royce has had a major presence in Germany since 1990, when the engine-maker set up a joint venture with BMW to build BR700 engines for regional aircraft and corporate jets. Since then, Rolls-Royce has invested €1.5bn (£1.3bn) in the German business, taking over the venture from BMW in 2000 and now employing more than 3,000 people in the renamed Rolls-Royce Deutschland business.
So far, the majority of the German business has been in civil aerospace. The Tognum deal would change the balance, playing into an increasing focus on global growth opportunities in the marine business.
Since buying Vickers in 1999, Rolls-Royce has turned the defence-focused business into a global player with merchant and offshore industrial buyers alongside its 70 naval customers.
The strategy has worked, pushing the marine division's revenues up at a compound annual growth rate of 21 per cent. And the sector remains critical to Rolls-Royce's future plans. At an investor meeting in November, John Paterson, the president of Rolls-Royce marine, forecast $340bn-worth of opportunities over the next 20 years, $235bn of them in the power systems, and the remainder in service contracts.
As a bastion of British industry, Rolls-Royce is a key player in the Government's aims to rebalance the economy away from an over-reliance on financial services, while simultaneously filling the gap left by public sector spending cuts with export-led private sector growth.
Underlining the Government's efforts to forge close links with industry, David Cameron cut the ribbon at the Rolls-Royce's research and development exhibition at its main UK facility in Derby yesterday. "I believe businesses like Rolls-Royce will play a crucial role in the UK's economic recovery, by supporting and creating jobs and delivering growth," he said.
Culinary experts in The Netherlands thought it was 'fresh' and 'tasty'
- 1 Marijuana use by teenagers does not result in a lower IQ or worse exam results, study finds
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes too far at the Q Awards
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 NHS staff banned from drinking tea or coffee on the job because it looks like they're not working hard enough
Renee Zellweger on plastic surgery: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
Kim Jong-un 'purge': Six North Korea officials missing for weeks 'may have been executed'
Diwali: What is the festival of lights – and how is it celebrated around the world?
Nathan Cirillo: Final pictures emerge of soldier moments before he was shot dead by Ottowa gunman
Jimmy Carr's controversial Oscar Pistorius joke goes too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
iJobs Money & Business
£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...
120-150k: Accountancy Action: We are looking for an experienced CFO from a min...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...