Rolls-Royce, Daimler value JV stake at $3.36 bn
16 Apr 2014
British engineering giant Rolls-Royce and Daimler have agreed to value the 50 per cent stake held by the German car major in their joint venture Rolls-Royce Power Systems (RRPS) at €2.43 billion ($3.36 billion).
This agreement comes a month after Rolls-Royce said it would take full control of RRPS.
''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," said, Dr. Wolfgang Bernhard, Daimler's board of management member for trucks and buses.
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. RRPS 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."
In 2011, Rolls-Royce and Daimler paid €3.2 billion to acquire Tognum and renamed it RRPS. (See: Rolls-Royce, Daimler offer to take over engine maker Tognum)
Under the deal, Rolls-Royce bought in its Bergen gas and marine diesel engine division while Daimler brought in its existing 28 per cent stake in Tognum.
Based in Friedrichshafen in Southern Germany, RRPS makes engines and propulsion systems for ships, trains and industrial vehicles and employs around 11,000 people.
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