Share Prices & Company Research

Market News

23 Mar 2021 | 11:57

Norway blocks Rolls-Royce sale of Bergen to Russia's TMH

(Sharecast News) - Rolls-Royce said on Tuesday that it will be seeking help from the Norwegian government to "find another option" after the sale of its Bergen marine engine business to Russia's TMH Group was blocked by Norway on national security grounds. The engine maker insisted it followed the appropriate process in contacting the authorities ahead of the announcement of the sale on 4 February.

"We have co-operated with the government's subsequent review by pausing the sales process and believed we had identified a new owner willing to invest in the business and its people for the long-term. We await formal legal notification by the Norwegian Government," it said.

"Bergen Engines has a skilled workforce and significant future commercial opportunities, but the manufacture of medium-speed gas and diesel engines is not core to our long-term strategy and we do not intend to retain the business."

Norway's Justice Minister Monica Maeland told parliament on Tuesday: "We now have sufficient information to conclude that it is necessary to prevent the company from being sold to a group controlled from a country with which we do not have security cooperation."

Rolls-Royce said it will be seeking the assistance of the Norwegian government to "swiftly find another option, which can provide Bergen Engines and its people with the investment required for the future and Rolls-Royce with an appropriate outcome".

The Norwegian government said in a statement: "The technology possessed by Bergen Engines, and the engines they produce, would have been of significant military strategic interest to Russia, and would have boosted Russian military capabilities."

Rolls-Royce agreed last month to sell Bergen to TMH for about €150m.

At 1230 GMT, the shares were down 3.9% at 107.55p, already under pressure due to concerns about the impact of Covid restrictions and travel bans on the airline industry.

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 14th May 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.