Daimler, Rolls-Royce now have a 60 percent share in Tognum

Article by Christian A., on June 6, 2011

Daimler AG and Rolls-Royce Group Plc now have a 60 percent share in Tognum AG, after their tender offer expired for the manufacturer of industrial diesel engines. Rolls-Royce and Daimler disclosed the stake resulted to a strong foundation for the alliance of the three companies.

Daimler already has 28.4 percent share of Tognum. Daimler and Rolls-Royce had offered 26 euros per share for Tognum, which values the diesel engine manufacturer at 3.4 billion euros ($4.9 billion).

The two companies succeeded in their takeover last May after they raised their offer by 8.3 percent to 26 euros a share and gained the support of Tognum’s board, which concurred to tender their 5 percent share, combined.

With the 28.4 percent share that Daimler has, a deal was made possible at the reduced acceptance threshold of 30 percent without the support of other shareholders of Tognum.

When the takeover is completed, Daimler will reconnect with a major purchaser of its truck diesel engines that are retooled by Tognum for specialized uses.

On the other hand, Rolls Royce will expand its marine and diesel power business. The two companies intend to tap into an international market that is worth at least 30 billion euros a year.

Tognum is ranked right behind Caterpillar Inc., which is the world’s largest manufacturer of high-speed diesel engines for the defense, marine and energy industries. Daimler used to own all of Tognum, which was call MTU Friedrichshafen at that time.

The company sold Tognum for 1.6 billion euros to EQT Partners, a Stockholm-based private equity firm, in March 2006 to help pay for the reorganization of U.S. automaker Chrysler, which it still owned at that time.

Topics: daimler, rolls-royce

If you liked the article, share on:

Pin It

Comments

Recommended

Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Since 1993, Lexus has produced 4 generations of the Lexus GS, with the GS F amongst its newest member of the family. Unfortunately, rumors are also heating up that the...
by - March 24, 2017
In a leaked image following a presentation held in China, we learned that Czech automobile manufacturer Skoda will soon unveil 2 more new SUVs in China, resulting in a four-model...
by - March 24, 2017
McLaren is said to be designing the next generation of Sports Series, which could include a V6 hybrid among its powertrain options. It was earlier reported that the British automaker...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries