Daimler AG is selling its 50% stake in an engine joint venture to partner Rolls-Royce Holdings Plc. to invest in its automotive and truck businesses.
In a statement, Daimler said it will sell the Rolls-Royce Power Systems holding under a put option agreed with the British manufacturer in 2011 when the venture was established.
The stake was valued at 1.9 billion pounds, or $3.2 billion, on Rolls-Royce’s balance sheet as of Dec. 31.
Daimler and Rolls-Royce made a joint 3.4 billion-euro ($4.72 billion) bid for German engine maker in 2011. The Friedrichshafen-based company manufactures high-speed diesel engines for the marine, energy and defense industries.
Source: Bloomberg News via The Detroit News
