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Norway's government has intervened in the planned sale of Rolls-Royce's Bergen Engines division to a Russian conglomerate, citing national security concerns. <\/p>\n
Bergen is a Norwegian firm with more than 165 years of history in the shipping industry, including 75 as a maker of diesel engines. It became part of Rolls-Royce through a series of acquisitions: it was purchased by Ulstein in the 1980s; Ulstein was acquired by Vickers in 1999; and later that year, Vickers was then itself acquired by Rolls-Royce. Bergen Engines has remained a self-contained division with its own product lineup. <\/p>\n
In February, Rolls-Royce said that it would sell Bergen to Russian rail and transport conglomerate Transmashholding (TMH). for $180 million. The decision follows a strategic review and asset disposal process which was first announced in February 2020, and it covers Bergen's medium speed engine factory, service workshop and foundry in Norway; its engine and power plant design capability; and its service network. <\/p>\n
In a statement in February, TMH said that it is interested in Bergen's work in low-emissions power, and that it "intends to develop a long-term strategy based on carbon-neutral applications."<\/p>\n
However, Norway's government is concerned about the strategic implications of the sale. Norway is a member of NATO, and its navy and coast guard are dependent upon Bergen Engines' marine powerplants; Russian ownership would be a strategic concern. “If there’s a Russian company owning a Norwegian firm from which we are to receive deliveries, we can’t take such deliveries,” Norwegian chief of defense General Eirik Kristoffersen told TV2. <\/p>\n
TMH is an international engineering giant, but 80 percent of its shares are held by four Russian nationals – mining magnate Iskandar Makhmudov, TMH president Andrey Bokarev, TMH CEO Kirill Lipa and TMH chairman Dmitry Komissarov. <\/p>\n
On Wednesday, Norwegian Defense Minister Frank Bakke-Jensen told NRK that the government is "looking at undesirable transfers of technology and knowledge.” The Norwegian NSM security agency is said to be investigating the details of the transaction. <\/p>\n
This news was not welcomed by the Russian Embassy in Oslo, which told Reuters that the "anti-Russian implication in this [review] causes serious concern."<\/p>\n