Rolls-Royce: Norway halts sale of Bergen engines

(CercleFinance.com) - Rolls-Royce has taken note of the Norwegian government's announcement that it will halt the sale of Rolls-Royce's Norwegian subsidiary Bergen Engines to the Russian company TMH Group.


The announcement has caused considerable uncertainty at Bergen Engines, which employs more than 900 people worldwide, including 650 at the main plant in Hordvikneset, Norway, the company said.

The sale of Bergen Engines is part of Rolls-Royce's divestment strategy to raise at least 2 billion pounds by 2022.

The company said that it will seek the Norwegian government's assistance to quickly find another option that can provide Bergen Engines and its people with the investment they need for the future and Rolls-Royce with an appropriate outcome.

The Norwegian government was not happy about the transfer of Bergen Engines technology to Russia, a country with which Norway has poor relations in terms of security.

Taken aback, investors are steering clear of the share for the moment - it is down almost 4% after lunch on Tuesday.


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