BRIEF-Rolls-Royce to buy Daimler stake of power systems unit with cash, borrowing
LONDON, March 7
LONDON, March 7 (Reuters) - British engineering company Rolls-Royce said on Friday it would fund the purchase of German carmaker Daimler's 50 percent stake of a jointly owned power systems company using cash and some borrowing.
Rolls-Royce said it had ample liquidity to take full ownership of the three-year-old joint venture Rolls-Royce Power Systems with Daimler's holding estimated to be worth 1.9 billion pounds ($3.18 billion).
The company said the transaction was expected to be completed within the next six months subject to the usual regulatory approvals.
"Rolls-Royce Power Systems has added scale and capability to our reciprocating engines business," said Chief Executive John Rishton in a statement.
"It has outstanding technology, operates in long term growth markets and has proved a valuable addition to our Marine and Industrial Power Systems division,"
He said the option, which is subject to a formal valuation process, was valued at 1.9 billion pounds on Rolls-Royce's balance sheet, ending December 31 2013.