EMEA News
Rolls-Royce, Wärtsilä Deal a No-Go
Rolls-Royce Plc. approached Wärtsilä Corp. (Wärtsilä) about a possible offer for the company, but the two are no longer in discussions, Wärtsilä announced Thursday in response to reports of the possibility of a takeover by the British company.
Reuters reports that Rolls-Royce may have seen the acquisition of Finland-based Wärtsilä as a way to strengthen its marine business.
"If you were Rolls-Royce, why would you not look at that opportunity?" said Ben Bourne, an analyst with Liberum Capital.
"You could become the dominant player in both civil aircraft wide-body engines and also marine engines."
Analysts said Rolls-Royce is likely to continue looking for possible acquisitions.
Rolls-Royce Chief Executive John Rishton has previously said that the company would like to expand its marine-engineering activities in Scandinavia, the Wall Street Journal reports.
"Scandinavian businesses, engines and offshore oil and gas activities" are all important, he said in July.
"We are seeing significant opportunity for growth on the way."
Rolls-Royce is increasing its focus on marine equipment, which now makes up 17 percent of its revenue, as demand for oil and gas exploration vessels and liquefied natural gas (LNG) carriers rises.
