Rolls-Royce in talks with Siemens to sell part of its energy business
30 April 2014
Britain's Rolls-Royce, a leading global provider of airplane engines, power systems and services, yesterday said that it was in talks with Germany's Siemens AG to sell its energy gas turbine and compressor business.
The business supplies aero-derivative gas turbines, compressor systems and related services to customers in the oil and gas and power generation sectors.
The sale does not include its nuclear business.
According to several media reports, the business, with 2013 sales of £940 million, is worth around $1.40 billion.
Rolls-Royce, which also makes engines for aircrafts, said that the discussions ''have not concluded and we will make a further announcement in due course.''
The London–based company is also in the midst of taking full control of its equal joint venture with Daimler, Rolls-Royce Power Systems, for $3.36 billion.
Munich-based Siemens is also planning to table a competing bid for French power generation and rail transportation giant Alsom SA. (See: Siemens to table offer for Alstom if given four weeks to conduct due diligence)