Daimler and Rolls-Royce secure 94% of Tognum

During the extended offer period, further shareholders representing 35.82% of Tognum’s share capital have tendered their shares into the offer made by the companies’ joint venture, Engine Holding GmbH. The final total of 94.17% also includes the 1.52% of the share capital (two million shares) that was acquired by the joint venture on the stock market during the earlier acceptance period. The high acceptance rate puts the companies in an excellent position to pursue its joint business objectives.

Tognum, based in Friedrichshafen, Germany, is the second-biggest manufacturer of high-speed diesel engines for the marine, energy and defence industries, after Caterpillar. London-based Rolls-Royce plans to combine Tognum’s MTU high-sped engine brand with its Bergen medium-speed business, which makes engines for ships and power generation, which it says will place it in direct competition with Caterpillar.

“We see great potential in this global market worth more than €30 billion a year,” Daimler chief financial officer Bodo Uebber said in the statement. “We are very pleased with the final acceptance rate.”

The regulatory filing and approval process to satisfy the conditions laid out in the offer document is continuing and the cash settlement of the transaction is expected in the third quarter of 2011, subject to having received all relevant approvals.