Daimler and Rolls-Royce secure control of Tognum
DAIMLER and Rolls-Royce have secured a 60 per cent stake in engine maker Tognum with a sweetened takeover bid, expanding their presence in higher margin industrial diesel engines.
But the bidding consortium fell short of its initial goal, which was to win full control of Tognum, a manufacturer of military and ship engines once owed by Daimler.
Last month German car and truck maker Daimler and the UK’s Rolls were forced to raise their offer to €26 (£23.20) a share, raising it from an initial €24 a share bid and valuing the diesel and gas engine maker at €3.4bn.
They hope to tap into a global market worth more than €30bn a year that is growing at above average rates.
But to gain access to intellectual property in the form of patents, and to enable a profit transfer agreement, bidders for German companies need to have control of at least 75 per cent.
Daimler and Rolls said yesterday that winning majority control laid a strong foundation for future co-operation between the three companies.