Wärtsilä confirms approach by Rolls-Royce
Wärtsilä Corporation acknowledged recent speculation about a potential transaction between Rolls-Royce Plc and Wärtsilä in a statement issued yesterday by the Wärtsilä Board of Directors.
“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.”
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. In 2012, Wärtsilä’s net sales totalled €4.7bn and the company had some 18,900 employees. Wärtsilä has operations in nearly 170 locations in 70 countries around the world and is listed on the NASDAQ OMX Helsinki, Finland.
There have been reports recently that Rolls-Royce has been in talks to purchase Wärtsilä’s marine propulsion unit, which accounted for 28% of group net sales in 2012. Wärtsilä has rejected other approaches for the unit, which it sees as retaining growth potential. The marine division of Rolls-Royce provided 18% of company revenue in 2012 and downgraded its profit guidance late last year from modest growth to broadly flat.
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