HELSINKI, Jan 21 (Reuters) – British engineering company Rolls-Royce is expected to make a public offer on the Finnish ship and power plant engine maker Wartsila, a newspaper reported on Tuesday, citing unnamed investors.
Rolls-Royce could offer at least 50 euros per Wartsila share, which would value the company at around 9.9 billion euros ($13.4 billion), Finland’s Helsingin Sanomat newspaper said.
It wasn’t clear, however, whether the investors had spoken based on speculation or information from the companies. Shares in Wartsila were up 1.9 percent at 41.47 euros by 1010 GMT.
Both companies declined to comment on the report.
Earlier this month, the companies said Rolls-Royce had made a preliminary approach to Wartsila, and added the talks ended without a deal. Wartsila told Reuters that the British company had been interested in buying its entire business.
By buying Wartsila, Rolls-Royce – the world’s second-largest aircraft engine maker – would strengthen its marine business, which had lowered its profit guidance in November.
Such a major deal would require Rolls-Royce to issue debt but there are few alternatives if it wants to boost its marine engine business, analysts said.
“There is limited scope for Rolls to do M&A around engines so doing a deal when debt is cheap is not without merit, and as far as we know Wartsila has a quality portfolio that probably has synergy for Rolls’ Marine and Power Systems divisions,” said analyst Rob Stallard at RBC Capital Markets.
Wartsila’s largest owner, with a stake of 22 percent, is a joint venture of Fiskars, which is backed by Finland’s Ehrnrooth family, and Investor AB, the investment arm of Sweden’s Wallenberg family.
ROME (Reuters) – An Italian judge on Friday cleared three migrant sea rescue charities that had been accused of abetting irregular immigration in complicity with human traffickers, throwing out a case opened...
(Bloomberg) — The closure of one of the East Coast’s busiest ports after the collapse of Baltimore’s Francis Scott Key Bridge has so far not led to broad price increases,...
(Bloomberg) — An Iranian ship that’s been linked to Houthi attacks in the Red Sea is returning home, removing a prominent asset in the area as the Islamic Republic braces...
April 18, 2024
Total Views: 1412
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.