Norway suspends Rolls-Royce asset sale on security grounds

Norway has suspended a planned asset sale by engine maker Rolls-Royce as it assesses the security implications of selling the supplier to the country's navy, the justice ministry said on Tuesday.

Reuters | Oslo | Updated: 09-03-2021 16:34 IST | Created: 09-03-2021 16:11 IST
Norway suspends Rolls-Royce asset sale on security grounds
Representative Image Image Credit: ANI

Norway has suspended a planned asset sale by engine maker Rolls-Royce as it assesses the security implications of selling the supplier to the country's navy, the justice ministry said on Tuesday. Norway's NSM security agency is assessing the 150 million euro ($178 million) sale of Bergen Engines to a company controlled by Russia's TMH Group, the ministry said.

Britain's Rolls-Royce announced the planned sale on Feb. 4 as part of a disposal plan aimed at helping the maker of engines for aircraft and ships survive the pandemic. Bergen Engines is, among other things, a supplier to NATO member Norway's navy.

"There is significant uncertainty in relation to national security interests, and this uncertainty must be dealt with," Justice Minister Monica Maeland told a news conference while adding the sale must be put on hold for the time being. "We don't know which conclusion we will draw," she said.

Any ongoing due diligence linked to the sale must also be put on hold as long as the review is ongoing, the ministry added. A spokesman for Rolls-Royce said it had alerted the government in the proper way before announcing the sale of Bergen Engines.

"We understand, however, that the Norwegian Government now wishes to further investigate the deal and Rolls-Royce will co-operate in any way we can with that review. As requested, we have paused the sales process," the spokesman said. While Norway welcomes foreign investment, this must be balanced against potential threats to national security, the justice ministry said.

"The security situation requires us to closely monitor foreign investments in strategic industries," Maeland said, adding she plans to give a separate briefing on the matter to parliament. Bergen Engines makes medium-speed gas and diesel engines for marine and power generation customers and employs about 950 people. It generated revenue of 239 million pounds in 2019, Rolls-Royce said when announcing the planned sale.

Rolls-Royce shares were down 0.6% at 1002 GMT, lagging a 0.3% rise in the FTSE 100 benchmark index. ($1 = 0.8435 euros)

($1 = 0.7211 pounds)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



Viral variants and vaccine nationalism pose two-pronged threat to Covid victory

... ...

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

World Water Day sees crises of inequality in countries both rich and poor

... ...


Latest News

Olympic President Bach to visit Japan in May, meet PM Suga - media

International Olympic Committee President Thomas Bach will visit Japan in May, the Kyodo News agency said on Saturday, as the nation struggles to contain a surge in COVID-19 cases before the start of the Games.Bach will attend a torch relay...

Bengal: BJP booth agent dies after falling sick during polling

A booth agent of the BJP died after falling sick at a polling station in West Bengals North 24 Parganas district on Saturday morning, prompting the Election Commission to seek a report, an official said.Abhijit Samanta, the BJP agent of boo...

Russian security service briefly detains Ukrainian diplomat

Russias FSB security service briefly detained a Ukrainian diplomat in St Petersburg, Ukraines foreign ministry said on Saturday, in the latest flare-up of tensions between the neighboring countries.Interfax news agency earlier reported the ...

Rwandan deported from the US faces seven charges related to genocide

A Rwandan woman who was deported by the United States after serving a prison term for lying on her naturalization application faces seven charges related to the 1994 genocide in Rwanda, authorities in Kigali said. During the genocide betwee...

Give Feedback