LONDON, March 7 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
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
"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.