RE: Last minute hitch?26 Sep 2021 13:12
Spanish investors put sale of Rolls-Royce aero parts arm at risk
Bain Capital needs the agreement of local partners to ease fears about jobs and investment to win Spanish backing for the deal
By
Alan Tovey,
INDUSTRY EDITOR
26 September 2021 • 9:00am
Spanish investors are threatening to derail Rolls-Royce’s crucial sale of its ITP Aero division, putting pledges made in its emergency rights issue in doubt.
The FTSE 100 company is in exclusive talks to sell the Spanish aircraft engine division, which makes jets for fighters such as the Typhoon as well as turbines used to power airliners such as the Airbus A350, to Bain Capital in a €1.6bn (£1.4bn) deal.
The private equity firm needs the agreement of local partners to ease fears about jobs and investment to win Spanish authorities’ backing for the deal.
However, industry sources say Bain is struggling to get concrete agreements from Spanish investors about their participation in the process ahead of a Monday deadline imposed by the Madrid government.
Boston-based Bain was granted a two-month exclusivity period by Spanish authorities to bring local partners on board.