Daimler to Sell Stake in Rolls-Royce Engine Venture

Daimler AG says it will sell its half of a three-year-old 50:50 engine-making venture to partner Rolls-Royce Holdings plc. The stake is worth an estimated 1.9 billion (€1.6 billion).

The Rolls-Royce Power Systems venture was created in August 2011 when the partners acquired German engine maker Tognum AG, a maker of high-speed diesels for the energy, defense and marine industries.

The resulting company combined Tognum's business with Rolls-Royce's Bergen unit, a maker of medium-speed marine turbine, diesel and gas engines.

Daimler is selling its stake through a put option agreed upon when the venture was set up. But the company will continue to supply about 18,000 medium- and heavy-duty diesels to Rolls-Royce Power Systems until 2025.