RR completes Commercial Marine sale

The transaction completed on 1 April following recent clearance from the relevant regulatory authorities. It was first announced on 6 July 2018.

Net proceeds after transaction costs and other adjustments are estimated to be around £350m to £400m. In 2018, Commercial Marine reported underlying revenue of £726m and an underlying loss of £35m.

As announced on 17 January 2018, the naval marine gas turbine and USA based propeller operations of the former marine business unit have already been consolidated within Rolls-Royce’s defence business.

Through the Bergen Engines operation of the Power Systems business and under the Rolls-Royce brand name, Rolls-Royce continues to develop and manufacture diesel and gas medium-speed engines for a variety of markets including commercial marine and power generation. Through a trading arrangement Kongsberg will continue to have access to Bergen Engines’ products.

Separately through its Power Systems business, Rolls-Royce remains a provider of high-speed engines for the commercial marine market, under the MTU brand name.