Companies

Rolls-Royce, Spain's Indra confirm talks over ITP Aero stake

Credit: REUTERS/ARND WIEGMANN

Rolls-Royce Holdings Plc on Friday confirmed it received a preliminary and conditional indication of interest from Spain's Indra Sistemas SA for a majority stake in the British engine maker's Spanish business ITP Aero.

Adds details, background

June 14 (Reuters) - Rolls-Royce Holdings Plc RR.L on Friday confirmed it received a preliminary and conditional indication of interest from Spain's Indra Sistemas SA IDR.MC for a majority stake in the British engine maker's Spanish business ITP Aero.

Rolls-Royce, which makes engines for the Boeing 787 Dreamliner and the Airbus A350 XWB, said it intends to retain a "long-term relationship with the (ITP Aero) business across its civil aerospace and defence programmes."

Indra confirmed in a statement it was in talks with the British company and said there was no certainty the talks would lead to a binding agreement.

Rolls-Royce bought 53.1% of the Spain-based aircraft engine and components maker it did not already own from privately owned SENER Grupo de Ingeniería SA for 720 million euros ($811.01 million) in 2017.

The business posted underlying revenue of 779 million pounds in 2018, which made up for just over 5% of Rolls-Royce's total sales.

($1 = 0.8878 euros)

(Reporting by Shashwat Awasthi in Bengaluru; Editing by Saumyadeb Chakrabarty)

((Shashwat.Awasthi@thomsonreuters.com; within U.S.+1 646 223 3403; outside U.S. +91 80 6749 3403; Reuters Messaging: shashwat.awasthi.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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