join venture

Rolls-Royce to acquire Daimler stake in engine JV for EUR2.43BB

Rolls-Royce Holdings Plc will pay EUR2.43 billion ($3.36 billion) to acquire the 50-percent stake held by joint venture partner Daimler AG at Rolls-Royce Power Systems. The carmakers target to complete the transaction within the next five months. The carmakers announced that the amount was the fair market value for the stake.

In March, Daimler said it intends to sell its stake in the joint venture under a put option agreed with the Rolls-Royce three years ago. Daimler and Rolls-Royce made a joint EUR3.4 billion bid for the engine maker in 2011. As part of the agreement, Rolls-Royce contributed its Bergen engine operations to the joint venture.

Wolfgang Bernhard, head of Daimler's commercial-vehicles division, said in the statement that they are pleased to ink a deal with Rolls-Royce in such a short period of time.