LONDON: Rolls-Royce has confirmed the completion of the sale of its Commercial Marine business to KONGSBERG of Kongsberg, Norway, which took place on April 01, 2019.
“Net proceeds after transaction costs and other adjustments are estimated to be around £350 to 400 million. In 2018, Commercial Marine reported underlying revenue of £726 million and an underlying loss of £35 million,” a notice issued to London Stock Exchange (LSE) noted.
The completion of the transaction, which was announced on 6 July 2018, follows recent clearance from the relevant regulatory authorities. As announced on 17 January 2018, the naval marine gas turbine and USA based propeller operations of Rolls Royce’s former marine business unit have already been consolidated within its defence business.[the_ad id=”31605″]Through the Bergen Engines operation of its Power Systems business and under the Rolls-Royce brand name, Rolls-Royce remains an important developer and manufacturer of diesel and gas medium-speed engines for a variety of markets including commercial marine and power generation. KONGSBERG will, through a trading arrangement, continue to have access to Bergen Engines product.
Separately through its Power Systems business, Rolls-Royce remains a provider of high-speed engines for the commercial marine market, under the MTU brand name.
Rolls-Royce pioneers cutting-edge technologies that deliver the cleanest, safest and most competitive solutions to meet our planet’s vital power needs. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 4,000 marine customers including 70 navies, and more than 5,000 power and nuclear customers.
Annual underlying revenue was £15 billion in 2018, around half of which came from the provision of aftermarket services. In 2018, Rolls-Royce invested £1.4 billion on research and development. It also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.