Rolls-Royce and Daimler have agreed the valuation of Daimler’s 50% equity interest in the joint venture Rolls-Royce Power Systems (RRPS).
Both parties have determined the fair market value of Daimler’s shares at EUR 2.43 billion. The transaction is expected to complete within the next five months and is subject to the usual regulatory approvals.
This follows the announcement on March 7, 2014 that the Board of Management of Daimler AG had decided to exercise the put option relating to its shareholding in RRPS.
RRPS, which previously operated as Tognum AG, is a world leader in reciprocating engines. It is headquartered in Friedrichshafen in Southern Germany and employs around 11,000 people.
John Rishton, CEO of Rolls-Royce said: “ We have enjoyed an outstanding working relationship with Daimler and this agreement represents a good outcome for both of our 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.”
Dr. Wolfgang Bernhard, Daimler’s Board of Management Member for trucks and buses, added: “ We are pleased to reach an agreement with Rolls-Royce in such a short period of time. This underlines the profound partnership established during the past years. Irrespective of the ownership situation, we will keep connections to RRPS based on our existing supplier relationship.”
[mappress] rolls-royce, April 16, 2014