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Daimler sells stake in Rolls-Royce Power Systems
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BRITISH engine marker Rolls-Royce and German carmaker Daimler have agreed to value the 50 percent stake in a jointly owned power systems company that Daimler is selling to Rolls-Royce at 2.43 billion euros (US$3.36 billion).
In March, Rolls-Royce said it would take full ownership of three-year-old Rolls-Royce Power Systems and would pay Daimler using cash and debt. Daimler said at the time that it expected a “significant cash flow” from the deal.
The companies said last week the deal was now expected to complete within the next five months and was subject to the usual regulatory approvals.
“We are pleased to reach an agreement with Rolls-Royce in such a short period of time,” said Wolfgang Bernhard, Daimler’s board management member for trucks and buses. “Irrespective of the ownership situation, we will keep connections to RRPS based on our existing supplier relationship.”
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