Rolls and Daimler eye engine maker

Rolls-Royce and car giant Daimler yesterday confirmed they were working on a joint plan to buy a leading maker of engines for ships and trains.

The pair said “constructive discussions” were taking place with Germany’s Tognum, which owns the historic engines business MTU.

The plan to acquire majority control would see Rolls buy an equal share of the business with Daimler, which owned Tognum until 2005 and currently holds a 28 per cent stake. Reports have suggested the takeover could value Tognum at around 3bn euros (£2.6bn)

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Tognum, which specialises in high-speed diesel engines and propulsion systems, generated revenues of 2.5bn euros (£2.1bn) in 2009.

Rolls said: “Rolls-Royce confirms that, together with Daimler, it is in discussions about the possibility of acquiring the majority of Tognum in equal shares. Currently, constructive discussions with the supervisory board and management board of Tognum are being held.”

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