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Kongsberg completes acquisition of Rolls-Royce’s Commercial Marine business

by The Editorial Team
April 1, 2019
in Shipping
kongsberg

Credit: Rolls-Royce

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After obtaining the European Commission’s approval, Kongsberg Maritime, with parent company Kongsberg Gruppen (Kongsberg) has completed the acquisition of Rolls-Royce Commercial Marine (RRCM), on April 1. Officially now part of Kongsberg Maritime, RRCM will operate under the Kongsberg brand and the Kongsberg Maritime legal entity.

Kongsberg announced its intention to acquire RRCM in July 2018. With the unification of Kongsberg Maritime and RRCM, Kongsberg is now represented in 40 countries, has more than 11,000 employees and an annual turnover of more than NOK 22 billion. In addition, a fleet of over 30,000 vessels depends on the organisation’s combined expertise.

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On  July 2018, Rolls-Royce had signed an agreement to sell its Commercial Marine business, to Kongsberg, for £500m and net proceeds of around £350m to £400m. The sale includes propulsion, deck machinery, automation and control, a service network spanning more than 30 countries and ship design capability. Rolls-Royce’s Ship Intelligence activities, including remote and autonomous operation of commercial vessels, are also included.

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Kongsberg will continue to have access to products from Bergen Engines, which remains part of Rolls-Royce Power Systems. Kongsberg will also be a partner and supplier to Rolls-Royce’s Defence business for the supply of Commercial Marine products used on Naval vessels.

Rolls-Royce Power Systems will continue to supply MTU engines to customers in the marine market including operators of commercial vessels and yachts. The Naval gas turbine propulsion activities will still be a part of Rolls-Royce Defence.

Commenting on the acquisition, Geir Håøy, CEO of Kongsberg, stated:

I have looked forward to this day for a long time. Together we are now well positioned in the market and our ambition is to lead the development of the future maritime industry globally in close cooperation with customers and partners. We shall be the ocean space expert. We have spent a long-time planning and preparing, now the work of ensuring a successful integration begins

In addition, Bård Bjørløw, EVP Global Sales and Marketing, Kongsberg Maritime, said that the goal is meet the evolving challenges of the maritime industry, through autonomy and digital solutions. He also added that the integration possibilities of the next generation of ‘The Full Picture’ will lead to new efficiencies and contribute to sustainability.

Kongsberg completes acquisition of Rolls-Royce’s Commercial Marine businessKongsberg completes acquisition of Rolls-Royce’s Commercial Marine business
Kongsberg completes acquisition of Rolls-Royce’s Commercial Marine businessKongsberg completes acquisition of Rolls-Royce’s Commercial Marine business
Tags: KongsbergmergerRolls-Royceship designshipping industry
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