Daimler Makes Higher Offer for Tognum

After industrial concern Tognum called the offer made by the consortium comprised of Daimler and Rolls Royce “not appropriate” last month, the German and British companies renewed their takeover offer and increased the price they are willing to pay for each tendered share by EUR2 to EUR6. At the same time, the two companies have extended the acceptance period until June 1.

Apparently, this new offer pleased Tognum's executives. Whereas in the middle of April they said they would recommend shareholders not to take the offer, now the company says it is welcoming the increased offer and have agreed to tender their shares.

“Today’s agreement is a milestone in Tognum’s history. With this reasonable increase of our offer, we have reached out to the management and all other shareholders of Tognum,” said Bodo Uebber, Daimler CFO.

“This underlines our commitment to pursue a forward looking and long term strategy that keeps in mind the best interest of all parties involved. We welcome Tognum’s pledge to support the offer.”

If approved by the shareholders and the merger control authorities, the company that will be born from the takeover will become the second largest supplier of diesel engines for marine applications in the world. Tognum is 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. Daimler pledged to maintain the current manufacturing sites and secure the jobs of those working for Tognum.