Rolls-Royce may table $13.4-bn bid for Finnish engineering giant Wartsila
21 January 2014
British defence and aerospace giant Rolls-Royce may table a bid for Finnish ship and power plant engine maker Wartsila, Finland's Helsingin Sanomat newspaper today reported, citing unnamed investors.
The paper said that the London-based company may offer around €50 per Wartsila share, valuing the company at around €9.9 billion ($13.4 billion).
Early this month, Wartsila confirmed media reports that it was approached by Rolls-Royce with a preliminary proposal for a possible offer for the company, but talks ended without a deal.
It said in a press release, " Wärtsilä Corporation notes the recent speculation about a potential transaction between Rolls-Royce Plc and Wärtsilä. We confirm the approach by Rolls-Royce with a preliminary proposal for a possible offer for the company. In case the company receives such proposals, the Wärtsilä Board has an obligation to evaluate such proposals."
Nasdaq OMX Helsinki-listed Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets.
The Helsinki-based company has operations in nearly 170 locations in 70 countries around the world, has around 18,900 employees and posted 2012 sales of €4.7 billion.
A joint venture between Fiskars Group and Investor AB is the largest shareholders in Wärtsilä with 19.44 per cent stake.
Fiskars, a leading global supplier of consumer products for the home, garden and outdoors, is Finland's oldest company and is backed by Finland's Ehrnrooth family, while Investor AB is the investment arm of Sweden's Wallenberg family, which has interests in Atlas Copco, ABB, SEB, Ericsson and the operating subsidiary Mölnlycke Health Care.