The bid made by the two partners, aimed at making them global players in the industrial engines market, is huge, amounting to EUR3.2 billion. The offer has been made through a 50:50 joint venture company between Daimler and Rolls Royce.
“Tognum is an excellent company, and the combination with Daimler and Rolls-Royce creates a win situation for all parties,” said Dieter Zetsche, Daimler chairman of the board.
“The planned combination will provide a strong platform to realize the huge market potential. It is an exciting proposition for Daimler to partner with Rolls-Royce to further invest in the Tognum business to create growth for the company and create additional value for our shareholders as well as for the customers and employees of Tognum.”
If approved by the shareholders and the merger control authorities, the resulting company will combine the expertise of all three parties involved. Tognum, one of the biggest suppliers of off-highway applications (engines, propulsion systems and components for marine, energy and defense, and other industrial applications), will use the Bergen brand name from Rolls Royce and will also benefit from Daimler's expertise. The new company will become the second largest supplier of diesel engines for marine applications in the world.
“This is a significant opportunity to harness the innovation, technology and engineering expertise of Rolls-Royce, Daimler and Tognum,” added John Rose, Rolls Royce CEO.
“The complementary capabilities we are bringing together will provide us with a world leading proposition, and will enable us to expand the business by developing a broader portfolio of integrated power systems and services for existing and new customers.”