/ world today news/ To cope with the crisis, Rolls-Royce decided to sell its unprofitable assets, including Bergen Engines, which Russian businessmen wanted to buy. But as soon as the deal was announced, Norwegian politicians strongly opposed it, and as a result, Norway, where Bergen is located, blocked the deal, The Times reported.
Rolls-Royce’s attempt to sell part of its business failed after the Norwegian authorities decided to block the deal with Bergen Engines, writes The Times. Fears that obtaining ship engines and technology from Bergen would be in the strategic interest of the Russian military and could greatly increase Russia’s military potential were cited as the reason for this blockade.
A month and a half ago, Rolls-Royce announced that it was selling its unprofitable Bergen Engines subsidiary to Russia’s Transmashholding, Russia’s largest train manufacturer. This contract would have been worth £130 million.
Recently, Rolls-Royce implemented a strategy to raise funds in all available ways: in total, they would get rid of assets worth 2 billion pounds and get another 5 billion from shareholders, the bond market and the banks. The company has been hit hard by the downturn in air travel due to the pandemic.
However, after announcing the Bergen deal, opposition politicians in Norway, where the company is registered, objected. They said it was unacceptable to sell the company to a group of countries with which Norway does not have a security cooperation agreement. Bergen manufactures engines for tankers, cargo and cruise ships and fishing trawlers. However, Norway also uses the same engines in its military and reconnaissance ships.
Rolls-Royce noted that they followed all the rules during the transaction and informed the authorities in advance. However, according to them, the fate of Bergen is now in question and it employs 900 people from all over the world. So the company is counting on Norway’s help in finding a new buyer. Meanwhile, Rolls-Royce shares immediately fell 5.9%, The Times reported.
Translation: ES
#Times #Norway #blocks #sale #RollsRoyce #subsidiary #Russia