Rolls-Royce in bid for MTU business

Should the deal materialise, it would be one of the largest ever in the high speed diesel engine world. As statement issued by Daimler and Rolls-Royce, which are both said to be hungry for acquisitions, confirmed that the two companies are discussing “the possibility of acquiring the majority of Tognum AG, in equal shares.”

MTU’s marine business is thought to be particularly attractive to Rolls-Royce, while Daimler – the Mercedes-Benz parent company, which previously owned MTU – is eyeing the off-highway and power generation sector.

As a result of the news, Tognum shares rose sharply, putting the value of the group on the Frankfurt stock market at around €3 billion. Should the deal proceed, Rolls-Royce is expected to combine the MTU high speed and Bergen medium speed marine engine business. Daimler is reported to own about 28% of Tognum, having bought into the group when it was floated in 2007, after disposing of MTU to private investors two years earlier.