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Rolls-Royce In Negotiations With Spanish Authorities Over Sale Of ITP Aero


04/24/2021


Rolls-Royce In Negotiations With Spanish Authorities Over Sale Of ITP Aero
Following reports in Spain about the government there potentially blocking the sale of the Spanish unit ITP Aero of the British engineering company Rolls-Royce, the firm has confirmed that it was in constructive talks with Spanish authorities about the deal.
 
The sale of turbine blade-maker ITP Aero is expected to secure up to 1.5 billion euros ($1.8 billion) for Rolls-Royce, the company has said. This sale deal is also a part of a broader asset sale of the company, from which it hopes to raise as much as 2-billion-pound ($2.8 billion), to plug the holes in its balance sheet that have been created because of the Cxovid-19 pandemic.
 
There were media reports a day ago quoting source information, about the possibility of the sale of the unit being blocked by Spain unless it received assurances from the future buyer about the future of ITP.
 
ITP is headquartered in the Basque region of Spain,
 
The talks with the relevant Spanish authorities, who were also closely involved in the negotiation process and the deal, were positive, Rolls-Royce said.
 
"The Spanish and Basque governments are important stakeholders and there is an ongoing and constructive dialogue with them," a Rolls-Royce spokesman told the media in an emailed statement.
 
There have been no comments on the issue from the Spanish government.
 
ITP would also continue to be a supplier to Rolls-Royce for a long time in the future, Rolls-Royce said and informed that multiple interested parties have expressed their interest ot be part of the sale process.
 
"As a result, it is obviously very important to us that a new owner is able to continue to invest in ITP Aero's technology, innovation and workforce," the spokesman said.
 
The plan for the sale of its assets was delivered a blow last month for Rolls-Royce after the sale of its maritime engine maker to a Russian company was blocked by Norway on arguments that the deal could threaten the national security of the country.
 
The British company is very aware that any form of sale of ITP will also need to come with detailed assurances from the buyer, said the reports quoting sources with knowledge of the matter. 
 
There was concern among Spanish authorities that ITP could be sold out by Rolls-Royce to a private equity fund, said reports about the deal, as they named KKR, Bain Capital and TowerBrook Capital as being among the fore runners interested to crack the deal. Spain is concerned that such financial buyers will try and give shape to industrial plans for the unit after buying it.
 
(Source:www.usnews.com)