(Adds detail, background)
OSLO, March 9 (Reuters) - Norway has suspended a planned
asset sale by engine maker Rolls-Royce as it assesses the
security implications of selling the supplier to the country's
navy, the justice ministry said on Tuesday.
Norway's NSM security agency is assessing the 150 million
euro ($178 million) sale of Bergen Engines to a company
controlled by Russia's TMH Group, the ministry said.
Britain's Rolls-Royce announced the planned sale on Feb. 4
as part of a disposal plan aimed at helping the maker of engines
for aircraft and ships survive the pandemic.
Bergen Engines is, among other things, a supplier to NATO
member Norway's navy.
"It may be that a sale of Bergen Engines AS to TMH Group
could jeopardise national security interests," Justice Minister
Monica Maeland said.
"It is therefore necessary to pause this process to
establish a sufficient basis of facts on which to consider the
transfer," she said.
Any ongoing due diligence linked to the sale must be put on
hold until Norwegian authorities have concluded their
investigation, the ministry said.
While Norway welcomes foreign investment, this must be
balanced against potential threats to national security, the
ministry added.
"The security situation requires us to closely monitor
foreign investments in strategic industries," Maeland said,
adding she plans to give a separate briefing on the matter to
parliament.
Bergen Engines makes medium-speed gas and diesel engines for
marine and power generation customers and employs about 950
people. It generated revenue of 239 million pounds in 2019,
Rolls-Royce said when announcing the planned sale.
($1 = 0.8435 euros)
($1 = 0.7211 pounds)
(Reporting by Terje Solsvik; editing by Jason Neely)
Rolls-Royce (RR.)
