Rolls-Royce wins control of Tognum

Rolls-Royce and Daimler have secured a 59.87% stake in German engine maker Tognum, after improving their joint takeover offer to 3.4 billion euros (£3 billion), it has been announced.

Rolls said the remaining shareholders have two more weeks to tender their shares into the offer.

The deal will allow Rolls to combine Tognum - which specialises in high-speed diesel engines and propulsion systems - with Bergen, the Derby-based firm's gas and diesel medium-speed engine business.

Daimler, which already owns 28.4% of Tognum, said the latest deal will allow it to forge closer ties with Tognum.

By combining the strengths, technology and market access of Daimler, Rolls-Royce and Tognum, the joint venture will establish a leading industrial engine systems and solutions company, offering a broad portfolio of products, services and integrated solutions on a worldwide basis.

Tognum, which was founded in 1909, generated revenues worth 2.5 billion euros (£2.2 billion) in 2009.

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