Siemens has entered talks with British giant Rolls-Royce in a move to acquire part of the engine maker’s energy business.
Rolls-Royce, in a statement on its website, confirmed negotiations with the German engineering conglomerate for the sale of its unit manufacturing aero-derivative gas turbines and compressor systems are ongoing.
The potential deal, reportedly worth around £800m, is part of Siemens’ new strategy which has also seen it enter the race with American rival General Electric to acquire French engineering group Alstom.
Talks for the acquisition of the energy division of Rolls-Royce are believed to have begun some time before Siemens entered the table for Alstom.
Excluding the nuclear division which is not part of negotiations, Rolls-Royce’s energy unit had revenue of around £940m in 2013.