Rolls-Royce sells off-highway business to Deutz: Financial expert analysis & implications

Rolls-Royce sells off-highway business to Deutz: Financial expert analysis & implications

According to a report from www.schwaebische.de,

Rolls-Royce has announced that it will sell its low-performance off-highway engine business to Cologne-based Deutz AG. The purchase price for this division is in the high double-digit million euro range, and the sale is scheduled to take place in mid-2024. These are engines with an output of up to 480 kilowatts for commercial vehicles that are used off-road. These engines are based on Daimler technology and are manufactured at Daimler Trucks' Mannheim engine plant.

The sale affects around 80 Rolls-Royce Power Systems employees, 60 of them in Friedrichshafen. Deutz intends to make offers to take over these employees. The Cologne engine builders expect sales of around 300 million euros from this sale.

As a financial expert, it is important to mention that the sale of this business is part of Rolls-Royce's new strategy to focus more on business areas with greater potential. This is expected to have an impact on the market and the financial industry. Rolls-Royce Power Systems' future focus will be on higher performance systems in the off-highway engine sector, which could potentially bring about changes in the competitive landscape and new opportunities for investment or partnerships.