FRANKFURT, March 9, 2011 (AFP) - German automaker Daimler and Britain's Rolls-Royce announced Wednesday plans to take over Tognum, a German manufacturer of motors and turbines they want to make into a world leader.
Daimler and Rolls-Royce "intend to launch a public tender offer for 100 percent of the share capital of Tognum," a statement said, adding that they would offer 24 euros ($33.36) per share.
That price valued the company, which would operate in dynamic emerging market economies, at "approximately 3.2 billion euros," the statement added.
It is expected "to become a world leading engine systems company" in what is known as the "off-highway" sector of marine, energy, defence and industrial applications.
The public tender offer for Tognum would be made by a 50:50 joint venture company, the statement said.
Tognum is based in Friedrichshafen, southern Germany and is a major supplier of engines to Daimler, the world's biggest heavy truck maker.
Daimler already owns 28 percent of the company.
Daimler and Rolls-Royce want to put Tognum in a strong position to to offer a wider range of products, systems and services, they said.
At present, Tognum also builds motors for armoured vehicles and boats and posted sales of 2.5 billion euros ($3.5 billion) in 2009, a level it expected to reach again in 2010.
Rolls-Royce is to bring its Bergen gas and diesel engine business to the deal along with its "world leading capability in integrated power systems and services," the statement said.
It will also contribute "a well established market presence in the marine, energy and defence sectors."
Daimler meanwhile is well positioned in engine technology and manufacturing expertise and also offers "exceptional access to global markets.
"It is an exciting proposition for Daimler to partner with Rolls-Royce to further invest in the Tognum business," Daimler chairman Dieter Zetsche said in the statement.
