Rolls-Royce and Wartsila pull out of takeover talks

wartsilaBritain’s blue chip aero and marine engine maker Rolls-Royce and the Finnish marine and energy power plant company Wartsila each issued statements today (Thursday) confirming they had been in talks on a takeover deal, but that the discussions were now over, at least for the time being.

Wartsila and Rolls-Royce both noted recent press speculation that said the British company had approached Wartsila to buy its marine engine business and speculating that the Finnish company might not have welcomed the approach.

The Helsinki-listed firm said: “Wärtsilä Corporation notes the recent speculation about a potential transaction between Rolls-Royce Plc and Wärtsilä.

“We confirm the approach by Rolls-Royce with a preliminary proposal for a possible offer for the company. In case the company receives such proposals, the Wärtsilä Board has an obligation to evaluate such proposals.

“However, we confirm that there are no longer ongoing discussions with Rolls-Royce.”

In similar vein, Rolls announced: “Rolls-Royce notes the recent press speculation and confirms that it has been in preliminary discussions with the Board of Wärtsilä regarding a possible offer for the company. However, those discussions are no longer continuing.”

Wärtsilä is a €4.7 billion (£3.9bn) turnover company with around 19,000 employees in 70 countries.

Copyright Ken Hurst 2014

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About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
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