Rolls-Royce & Daimler Joint Venture PTO For Tognum
Daimler AG and Rolls-Royce Group plc have announced that they intend to launch a public tender offer (PTO) for 100% of the share capital of Tognum AG. The PTO is intended to be carried out by a 50:50 joint venture. The proposed joint venture, comprising of Tognum and Bergen, Rolls-Royce’s gas and diesel medium-speed engine business, will offer significant advantages to Daimler, Rolls-Royce and Tognum.
The markets in which the joint venture will operate are attractive and fast growing, especially in the developing economies. By combining the strengths and market access of these three world-class companies the joint venture will be able to offer a compelling portfolio of products, services and integrated solutions on a global basis, thus enabling the joint venture to become a world leading engine systems company and creating additional value for shareholders. The partners intend to maintain the current manufacturing sites and are confident that the growth strategy will secure jobs and lead to further opportunities. This may include investment in new state of the art plant and facilities to enable growth and deliver productivity improvements.
Win Situation
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG, said: “Tognum is an excellent company, and the combination with Daimler and Rolls-Royce creates a win situation for all parties. The planned combination will provide a strong platform to realise the huge market potential. It is an exciting proposition for Daimler to partner with Rolls-Royce to further invest in the Tognum business to create growth for the company and create additional value for our shareholders as well as for the customers and employees of Tognum.”
Significant Opportunity
Sir John Rose, Chief Executive, Rolls-Royce Group plc, said: “This is a significant opportunity to harness the innovation, technology and engineering expertise of Rolls-Royce, Daimler and Tognum. The complementary capabilities we are bringing together will provide us with a world leading proposition, and will enable us to expand the business by developing a broader portfolio of integrated power systems and services for existing and new customers.”