Rolls-Royce plant that Norway barred TMH from buying will go to UK co
MOSCOW. Aug 4 (Interfax) - Rolls-Royce has signed an agreement to sell its Bergen Engines plant in Norway to British engineering company Langley Holdings for 63 million euros.
The Norwegian government has been notified of the agreement and the deal is expected to be closed by the end of 2021, Rolls-Royce said in a press release. In addition to the proceeds from the sale, Rolls-Royce will retain Bergen cash resources in the amount of 40 million euros.
Bergen Engines, which manufactures medium-speed diesel and gas engines, has 900 employees, including 650 at its main production facility in Hordvikneset. The plant closed 2020 with revenue of about 200 million euros, and its revenue is expected to grow to about 260 million euros in 2021, Langley said.
In February 2021, Rolls-Royce agreed to a different buyer, Russian train manufacturer Transmashholding (TMH). However, in late March the Norwegian government decided to block the sale of the plant to TMH, citing national security interests.
In late May, TMH co-owner Andrei Bokarev said the company was continuing to work with Rolls-Royce on buying Bergen Engines. "We don't consider this deal over yet. We're working with the seller. The British are sorting things out with the Norwegians themselves. After all, it's in their interest foremost," Bokarev said at the time.
With the acquisition, TMH intended "to expand [its] presence on the world market of engines, primarily gas engines for autonomous small-town or industrial power plants," the company said at the time.
Russia's Foreign Ministry said the arguments that the Norwegian authorities cited for their decision to prohibit the deal with TMH were contrived.
Langley Holdings is headquarters in the UK, but also has a presence in Germany, Italy, France and the United States. The company was founded by Anthony Langley in 1975 and still remains a family-owned business. Langley's customers include the UK's Ministry of Defense, to which it supplies equipment for submarines.
