Daimler announced that it is selling its 50% stake in a JV with Rolls-Royce Power Systems to Rolls-Royce PLC. The joint venture was established three years ago enabling both companies to pool their resources and purchase German engine maker Tognum, which specialized in engines for defense, marine and industrial applications, for 3.4 billion euros.
Daimler's formal exit from the shared ownership does not, however, affect their other partnerships and the sale will not affect existing supply agreements. These agreements extend into 2025.
"After the successful cooperation with Rolls-Royce and the positive development of RRPS, we are now taking the next logical step and are transferring our shares to our joint-venture partner," said Daimler head Dr. Dieter Zetsche.
The sale will consequently raise funds for Daimler to invest in its own core businesses.
"Irrespective of the ownership situation, we will remain closely connected with the company based on our supply relationship," said Daimler's trucks and buses division chief, Dr. Wolfgang Bernhard. "In close coordination with Rolls-Royce, we will further drive the business for heavy-duty and medium-duty diesel engines."
The stake that Daimler held in the JV has been estimated at approximately, more than $3 billion.
