Engine manufacturer Rolls-Royce is set to take full control of the joint venture that was Rolls-Royce Power Systems after the company agreed to acquire the remaining 50% share holding from former partner, Daimler AG.
Rolls-Royce will acquire the shares from Daimler, which has been in a 50-50 joint venture partner in RRPS since 2011. The option, which is subject to a formal valuation process, was valued at £1.9bn on the Rolls-Royce balance sheet at Dec 31st 2013.
RRPS, which previously operated as Tognum AG, is a maker of reciprocating engines. It is headquartered in Friedrichshafen in Southern Germany and employs around 11,000 people.
Dr Dieter Zetsche, chairman of the board of management of Daimler AG said: “After the very successful cooperation with Rolls-Royce and the positive development of RRPS, we are now taking the next logical step and are transferring our shares to our joint-venture partner. All parties involved will benefit from this move, especially RRPS and its workforce.”