Daimler AG and Rolls-Royce plc, the maker of aircraft and other engines, have organized a new joint venture company aimed at a takeover of Tognum AG, a maker of heavy-duty engines.
The goal of the new venture, which is offering to pay Tognum shareholders a 30% premium for their stock, is to create a leading company in the industrial engines market. The joint venture will strengthen Tognum’s position and establishes a broader range of products, systems and services as well as a global sales network in market valued at $40 billion annually.
The company will be owned 50-50 by Daimler and Rolls-Royce, which also will contribute its Bergen gas and diesel medium-speed engine business – further enhancing the growth prospects of Bergen. Rolls-Royce also will contribute its medium speed reciprocating engine business which trades under the Bergen brand name to operate within the new joint venture company. Engines from Bergen, which is based in Norway, include diesel and gas-powered reciprocating engines used for marine propulsion and auxiliary power markets.