Thursday, January 09, 2014

Rolls-Royce, Wärtsilä End Merger Talks: U.K. Industrial Group Would Have Taken Over Finnish Engine Maker

The Wall Street Journal

By  Matthew Curtin

Jan. 9, 2014 2:54 a.m. ET

LONDON— Rolls-Royce Holdings PLC and Wärtsilä Oyj  said Thursday they are no longer in merger talks which would have seen one of the U.K.'s flagship industrial groups take over its smaller Finnish engine-making rival in a multibillion-dollar deal.

Rolls-Royce, which makes aircraft engines for Airbus Group and Boeing Co.,  said "preliminary discussions with the board of Wärtsilä regarding a possible offer for the company…are no longer continuing."

Helsinki-listed Wärtsilä confirmed in a separate statement that talks have ended after it had received a preliminary approach from the British company.

The companies said their statements follow press speculation about a possible deal.

The Finnish company, which has a market capitalization of around €6.7 billion ($9.1 billion), derives most of its €4.7 billion in annual revenue from making power-generation equipment for liquid-fuel and gas power plants as well as making engines for ships. It also has a services business.

Rolls-Royce, best-known for making engines for commercial aircraft, is also a big producer of power equipment and increasingly focused on the marine industry.

Rolls-Royce in partnership with Daimler AG of Germany is the process of the completion of the takeover of Germany engine maker Tognum AG. Wärtsilä recently acquired Hamworthy, a specialist U.K. maker of marine equipment.


No comments:

Post a Comment