Rolls-Royce has confirmed that it is in talks with Siemens to sell its energy gas turbine and compressor business for £900m.
Rolls-Royce said in a statement that "these talks have not concluded and we will make a further announcement in due course" but added that if the deal is completed, it will put the cash towards the £1.8bn (€2.3bn, $3bn) purchase of Daimler's 50% stake in their power systems joint-venture.
The business Rolls-Royce is aiming to sell to Siemens supplies aero-derivative gas turbines, compressor systems and related services to customers in the oil and gas and Power Generation sectors.
On 7 March 2014, Daimler announced their intention to exercise their option to sell their 50% share in RRPS to Rolls-Royce Holdings.
On 16 April 2014, Rolls-Royce and Daimler announced that they have agreed the valuation of Daimler's 50% equity interest. The transaction is expected to complete within the coming months and is subject to the usual regulatory approvals.
Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers.
In 2013, Rolls-Royce's underlying revenue reached £15.5bn, around half of which came from the provision of aftermarket services.
Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.