Rolls-Royce plc (LON:RR) has sold Rolls-Royce Commercial Marine to Norwegian tech supply and services firm, Konsberg (OTCMKTS: NSKFF).
The move comes after a strategic review by Rolls-Royce in January, which concluded that the firm had plans to focus its resources on its other subsidiaries, such as maritime business, Bergen Engines and its naval businesses. The £500 million sale of Commerical Marine included rights to propulsion, deck machinery, automation, control, and ship design capability, as well as its service network spanning 34 countries.
Combined, Commercial Marine and Konsberg have equipment an deliveries associated to around 30,000 vessels worldwide, thus the combined networks of 34 countries and 25 countries respectively, bodes well for the firm having a leading market position.
Geir Håøy, CEO and President of Kongsberg said, “The acquisition strengthens our global presence and will give increased sales and service volumes. Kongsberg is a world leader within automation, navigation and control systems, whilst Rolls-Royce Commercial Marine is complementary with its deliveries of propellers, propulsion systems, handling systems and ship design. Both companies hold leading positions within digitization, ship intelligence and concepts for autonomy. By bringing together this we are positioning us as a significant strategic supplier of complete solutions for the future maritime industry.”
“This transaction builds on the actions we have taken over the last two years to simplify our business,” Rolls-Royce chief executive Warren East said.
“The sale of our commercial marine business will enable us to focus on our three core businesses and on meeting the vital power needs of our customers.”
Rolls-Royce’s share price currently stands at 984.2p, down by 0.14 percent since trading began this morning. Analysts from UBS have an unchanged ‘Buy’ stance on Rolls-Royce stock.
