Rolls-Royce agrees valuation to sell JV stake to Daimler

16th Apr 2014 11:09

Rolls-Royce and Daimler have agreed on the value that Daimler will sell its 50 per cent stake in the pair's power systems joint venture.Both parties agree the fair market value of Daimler's half of Rolls-Royce Power Systems (RRPS) was worth €2.43bn, meaning the transaction is expected to complete within the next five months, subject to the usual regulatory approvals.In early March Daimler decided to exercise a put option and sell its stake in RRPS.The pair came together three years ago to acquire German diesel engine supplier Tognum, which became RRPS.Rolls-Royce Chief Executive John Rishton said: "We have enjoyed an outstanding working relationship with Daimler and this agreement represents a good outcome for both of our companies. Rolls-Royce Power Systems has added scale and capability to our reciprocating engines business. "It has world class technology, operates in long term growth markets and has proved a valuable addition to our Marine and Industrial Power Systems division." Shares in Rolls-Royce were up 0.35% to 1,012.5p at 11:35 on Wednesday. OH