Photo: Image Edited by autoevolution
Back in March we were telling about Daimler's decision to exit a three-year old joint venture with Rolls-Royce Holdings Plc., with the Germans deciding to sell their half of equity interest in a company to their British partners.
While the exact amount of money that Daimler AG was going to receive from Roll-Royce wasn't known at the time, it has been announced today that the 50 percent stake is worth no less than 2.43 billion euros (approximately $3.36 billion).
The company at hand is now called Rolls-Royce Power Systems (RRPS), a manufacturer of high-speed diesel engines and propulsion systems for heavy land, rail and defense vehicles and for the oil and gas industry.
Until a few months ago it was called Tognum, and has been under the tutelage of both Daimler AG and Rolls-Royce since 2011, when both companies made a joint 3.4 billion euro bid for the Friedrichshafen-based engine manufacturer.
“We are pleased to reach an agreement with Rolls-Royce in such a short period of time,” said Wolfgang Bernhard, who is head of Daimler's commercial-vehicles division. “This underlines the profound partnership established during the past years.”
The 2.43 billion euros that Daimler AG will get from Rolls-Royce are “to be used in strengthening Daimler's core business,” according to Bodo Uebber, Member of the Board of Management of Daimler AG for Finance and Controlling and Daimler Financial Services.
Even though the German car giant no longer has an equity stake in RRPS, they will continue to supply medium and heavy duty engines to the company until 2025, when their original agreement should end.
The company at hand is now called Rolls-Royce Power Systems (RRPS), a manufacturer of high-speed diesel engines and propulsion systems for heavy land, rail and defense vehicles and for the oil and gas industry.
Until a few months ago it was called Tognum, and has been under the tutelage of both Daimler AG and Rolls-Royce since 2011, when both companies made a joint 3.4 billion euro bid for the Friedrichshafen-based engine manufacturer.
“We are pleased to reach an agreement with Rolls-Royce in such a short period of time,” said Wolfgang Bernhard, who is head of Daimler's commercial-vehicles division. “This underlines the profound partnership established during the past years.”
The 2.43 billion euros that Daimler AG will get from Rolls-Royce are “to be used in strengthening Daimler's core business,” according to Bodo Uebber, Member of the Board of Management of Daimler AG for Finance and Controlling and Daimler Financial Services.
Even though the German car giant no longer has an equity stake in RRPS, they will continue to supply medium and heavy duty engines to the company until 2025, when their original agreement should end.
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