DEUTZ is taking over the activities of Rolls Royce Power Systems and expects additional annual sales of 300 million euros. Analysts rate the deal positively.

DEUTZ is taking over the activities of Rolls Royce Power Systems and expects additional annual sales of 300 million euros. Analysts rate the deal positively.

According to a report by www.finanzen.net,

The engine manufacturer DEUTZ plans to take over various activities from Rolls Royce Power Systems. This includes the sales and maintenance of various industrial engines, which will lead to additional annual sales of around 300 million euros for DEUTZ. The profit margin before interest and taxes on the acquired businesses will be higher than the current DEUTZ Group margin. The expected purchase price is in the high double-digit million euro range, and the agreement is expected to be concluded in mid-2024.

DEUTZ shares reacted positively to the planned takeover, with a temporary increase of 7.73 percent in the SDAX. Analysts view the deal as positive overall and predict a return to its highest valuation since mid-August. The affected engines are used in various off-highway applications, particularly in the agricultural and construction machinery sectors.

The planned takeover could lead to an increase in sales and profit margins for DEUTZ in the future. The additional activities could also expand the company's product portfolio and strengthen its positioning in the market. However, regulatory and compliance aspects must be taken into account and the exact extent of the synergies and efficiency gains resulting from the acquisition still need to be examined.

Overall, there is a possibility that DEUTZ's acquisition of Rolls Royce Power Systems will have a positive impact on the company's share price and competitive position.