LONDON (dpa-AFX) - Rolls-Royce Holdings plc (RYCEF.PK) Thursday said that it has reached agreement-in-principle with Germany's Deutz AG on sale of its engine business in the power range of 75 kW to 480 kW, for a price in the high double-digit million euros.
Following the news, Deutz shares were gaining more than 6 percent in the morning trading in Germany.
The agreement deals with diesel engines and engine systems using Daimler technology which are developed by Daimler Truck AG for Rolls-Royce Power Systems.
Following a final deal, the closing is expected from mid-2024, subject to regulatory approvals.
The engines under discussion are the series 1000, 1100, 1300 and 1500 and Classic series 0M900 and 0M460.
The company said that until the agreement closes, its Power Systems division will continue working unaffected.
Rolls-Royce Power Systems currently has exclusive rights to the global distribution of off-highway engines using Daimler technology, with the original contract term set to expire in April 2028.
Currently, Rolls-Royce's stock is trading at 309.40 pence, up 2.52% on the London Stock Exchange.
In Germany, Deutz stock is trading at 4.41 euros, up 6.57%.
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