Rolls-Royce PLC (LON:RR.) has suffered a blow to its disposal programme after the Norwegian government blocked the £130mln sale of Bergen Engines to a Russian firm on national security grounds.
The aero engineer signed an agreement to sell Bergen to TMH in February and said it had contacted the Norwegian authorities in advance about the deal
“We have co-operated with the Government's subsequent review by pausing the sales process and believed we had identified a new owner willing to invest in the business and its people for the long-term. We await formal legal notification by the Norwegian Government," the UK group added in a statement.
Rolls-Royce said that it still intends to sell the business as Bergen's medium-speed gas and diesel engines are not core to its long-term strategy.
The disposal was part of a plan to raise at least £2bn from asset sales by early 2022.
“We will be seeking the assistance of the Norwegian Government to swiftly find another option, which can provide Bergen Engines and its people with the investment required for the future and Rolls-Royce with an appropriate outcome,” the statement added.
Established in 2002, TMH is privately-owned and employs 100,000 people across 25 sites worldwide making railway rolling stock.