Rolls-Royce to Buy Wartsila's marine division

By Finance
The British giant company Rolls-Royce is in negotiations to buy the propulsion maritime unit of the Finnish vessel manufacturer and power plant Wartsila, according to the press release of Bloomberg.

Sources told Wartsila might oppose the offer of Rolls-Royce. Wartsila sees a good opportunity and big potential for growth of the maritime propulsion unit and refused approaches from other companies.

Representatives of Wartsila must negotiate a really good price with Rolls-Royce, because the vessel power unit brought 28% of the net sales of Wartsila Group in 2012.

On the other side, the 2nd-largest aircraft engines maker Rolls-Royce just behind the U.S. group General Electric, reported a decline in its profit guidance for its business in the maritime industry in November. Rolls-Royce generated about 18% of its revenue from the marine division in 2012.

Wartsila and Rolls-Royce are not giving any comments on that matter, yet.