Finland’s Wartsila will take a look at Rolls-Royce Holdings’ (LON:RR) loss-making marine business, Reuters has revealed. The news comes after the blue-chip group recently announced that it was reviewing the division, which has been plagued by weak demand as well as a drop in oil prices.
Rolls-Royce’s share price has climbed into positive territory in today’s trading, having gained 0.91 percent to 867.20p as of 09:32 GMT, outperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.06 percent higher at 7,583.53 points. The group’s shares have added more than 31 percent to their value over the past year, as compared with a near seven-percent rise in the Footsie.
Wartsila to take look at marine unit
Reuters reported today that Wartsila had signalled that it would take a look at Rolls-Royce’s marine business.
“If we see any interesting player in the market, who would fit well to our strategy [...] we would definitely look at it,” the Finnish group’s chief executive Jaakko Eskola told a news conference. “We need to look at what is available there and what is going to be their final plan.”
Reuters notes that the two companies had said back in 2014 that Rolls-Royce had made an approach to take over Wartsila, but the talks ended without a deal.
Analysts on British engine maker
The 17 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 875.00p on the shares, with a high estimate of 1,261.00p and a low estimate of 645.00p. As of January 27, the consensus forecast amongst 21 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.