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By David Kaminski-Morrow2021-08-04T07:23:00+01:00
Rolls-Royce is progressing with its strategy to raise some £2 billion from divestments, having agreed to sell a non-core Norwegian gas and diesel powerplant business to engineering group Langley Holdings.
The sale of Bergen Engines – which has strong links to Kongsberg Maritime – has been achieved five months after the Norwegian government interrupted a previous planned sale to TMH Group.
Norway’s government blocked the sale at the end of March this year over TMH Group’s links with Russian entities, citing the need to ensure that national security interests were not threatened.
It pointed out that the technology in Bergen Engines’ possession would have “great military strategic significance” to Russia and would strengthen Russia’s military capabilities.
MURPHY S LAW: Norway Says No
May 13, 2021: In early 2021 Norway blocked British firm Rolls-Royce from selling Bergen Engines, a Norwegian firm Rolls Royce bought in the 1990s. Rolls-Royce kept Bergen Engines in Norway, where it was a major producer of maritime engines. A Norwegian court backed the ban of the sale, that would provide Rolls-Royce with $178 million of the $2.7 billion it was seeking to obtain by selling off assets to help it survive the covid19 recession that had reduced its sales and threatened the entire firm. The Bergen Engine was to be sold to TMH Group, a Russian controlled holding company based in Switzerland. Why did the Russians want this Norwegian firm? Bergin Engine had sales of $333 million in 2019 and is a major supplier of naval engines to Norway and other NATO nations. While Norway has a law that blocks such “national security” sales, that law cannot block the sale indefinitely and the best solution is to a
Will the Rolls-Royce share price bounceback in 2021?
More on:
With a 12% fall in the
Rolls Royce (LSE: RR) share price in the past three weeks, this question comes up yet again. The Rolls-Royce share price has seen plenty of ups and downs in the past year (though it’s up almost 9.5% over 12 months) given the company’s heightened sensitivity related to all sorts of developments from vaccines to its own finances.
Why did the share price fall?
The Rolls-Royce share price fall coincided with the Norwegian government stopping the sale of its marine engines manufacturer,
Bergen Engines, to a Russian company.
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