Rolls-Royce Regulatory News (RR.)

23 March 2021

Statement re: Bergen Engines

We note the announcement by the Norwegian Government that the sale of Bergen Engines to TMH Group must be stopped. We followed the appropriate process in contacting the authorities in advance of the announcement of the sale on 4 February 2021. We have co-operated with the Government's subsequent review by pausing the sales process and believed we had identified a new owner willing to invest in the business and its people for the long-term. We await formal legal notification by the Norwegian Government.

Bergen Engines has a skilled workforce and significant future commercial opportunities, but the manufacture of medium-speed gas and diesel engines is not core to our long-term strategy and we do not intend to retain the business.

Today's announcement will cause significant uncertainty in Bergen Engines, which employs more than 900 people worldwide including 650 in the main factory in Hordvikneset. We will be seeking the assistance of the Norwegian Government to swiftly find another option, which can provide Bergen Engines and its people with the investment required for the future and Rolls-Royce with an appropriate outcome.

We remain committed to our target, as set out originally on 27 August 2020, to raise at least £2bn from disposals by early 2022.

About Rolls-Royce Holdings plc

1. Rolls-Royce pioneers the power that matters to connect, power and protect society. We have pledged to achieve net zero greenhouse gas emissions in our operations by 2030 [excluding testing] and joined the UN Race to Zero campaign in 2020, affirming our ambition to play a fundamental role in enabling the sectors in which we operate achieve net zero carbon by 2050.

2. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces and navies, and more than 5,000 power and nuclear customers.

3. Annual underlying revenue was £11.76 billion in 2020 and we invested £1.25 billion on research and development. We also support a global network of 28 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.

4. Rolls-Royce Holdings plc LEI: 213800EC7997ZBLZJH69

For further information, please contact:

Richard Wray

Director of External Communications and Brand

richard.wray@rolls-royce.com 

M +44 (0)7810 850 055

Isabel Green

Head of Investor Relations

isabel.green@rolls-royce.com 

M: +44 (0)7880 160 976