Tognum accepts Rolls’ joint bid

Tognum last month rejected a 24 euro (£21.40) per share bid, saying it undervalued the company, but an improved offer of 26 euros (£23.20) was accepted by 58.35 per cent of shareholders, after winning the support of the management.

Rolls and Mercedes Benz owner Daimler have bought a further 1.5 per cent of the shares on the stock market, meaning their joint-venture, Engine Holding, now controls 59.87 per cent of the stock.

In one of the biggest deals in its 100-year history, Rolls plans to combine Tognum with its own Bergen business, which makes engines used across the maritime and power generation sectors.

Car giant Daimler already owns 28.4 per cent of Tognum, which is best known as a supplier of engines for ships and trains through its MTU subsidiary. The deal will allow Daimler to forge closer ties with Tognum, which is one of its biggest buyers of engines.

Derby-based Rolls said the news represented a milestone in the takeover of Tognum and laid a strong foundation for the co-operation of the three companies.

Rolls expects more shares to be tendered over the following two weeks as part of an additional acceptance period.

Rolls has said the joint venture will establish a leading player in the industrial engines market, strengthening Tognum’s own position while establishing a broader range of products.