The Department of National Security of Norway may block the purchase of engine OEM Bergen Engines belonging to Rolls-Royce by Russian Transmash-Holding. According to Justice Minister of Norway Monica Melan, the acquisition may be a threat to national security. The deal is estimated at €150 million. According to the minister, it’s necessary to suspend a deal to collect information for making a final decision.
Bergen Engines was founded in 1946. Since then, the company delivered more than 7,000 engines, 5,000 of them still operating. Current personnel number is 900 people.
The technologies from the plant were going to be used in power generation for applications including shipbuilding. However, engine supplies could be restricted because of the sanctions.
PSR Analysis. Here we see a re-run of a 12-year-old story, when Russian Sberbank attempted to purchase the Opel company from General Motors. At that time (in 2009) the attempt failed, and GM cancelled the deal. What approach will win now – disposition of a loss-making asset, or unwillingness to share technologies – it’s uncertain at the moment. PSR
Maxim Sakov, Market Consultant – Russia Operations for Power Systems Research
