Rolls-Royce will keep €110m from the deal
Rolls-Royce (LON:RR) has struck an agreement to sell Bergen Engines, its Norwegian maritime engine business, to Langley Holdings, the UK engineering group, for €63m (£53.6m).
Rolls-Royce will keep €110m (£93.6m) as part of the agreement, €70m from the deal, as well Bergen’s current €40m cash holding.
Bergen employs more than 900 people across the world and made revenues of around €200m last year.
The deal is awaiting approval from the Norwegian government as they have expressed concerns over the company being sold to a Russian company due to national security concerns.
The sale by Rolls-Royce is part of its wider plan to generate money from disposals to aid its recovery from the devastating impact of the coronavirus pandemic on its balance sheet.
The FTSE 100 company initially put Bergen up for sale in March, however, it was vetoed at that point by the Norwegian government.
Rolls-Royce had put Bergen back on sale in March after a deal to sell the company to a Russian group for €150m (£132.5m) was vetoed by Norwegian politicians on national security grounds.
The Rolls-Royce share price is up by 1.75% during the morning session on Wednesday.
Warren East, CEO of Rolls-Royce, commented on the sale: “We believe that this agreement will provide Bergen Engines and its skilled workforce with a new owner able to take the business on the next step of its journey. The sale of Bergen Engines is a part of our ongoing portfolio management to create a simpler, more focused group and contributes towards our target to generate at least £2bn from disposals, as announced last year.”
 has struck an agreement to sell Bergen Engines, its Norwegian maritime engine business, to Langley Holdings, the UK engineering group, for €63m (£53.6m).){kind=link}