Rolls-Royce’s share price (LON:RR) is outperforming the broader London market as the British engine maker announced that it had agreed to acquire Siemens’ eAircraft business. The update comes after the FTSE 100 company confirmed last week that it had received interest from Spain’s Indra Sistemas SA to buy a majority stake in its Spanish business ITP Aero.
As of 14:47 BST, Rolls-Royce’s share price had added 2.32 percent to 928.00p, outperforming the broader market, with the benchmark FTSE 100 index currently standing 1.31 percent higher at 7,453.61 points. The group’s shares have added nearly one percent to their value over the past year, as compared with about a 2.4-percent dip in the Footsie.
RR buys Siemens’ eAircraft unit
Rolls-Royce announced in a statement today that it had entered into an agreement to acquire the electric and hybrid-electric aerospace propulsion activities of Siemens, eAircraft. The British engine maker expects the move to accelerate the delivery of its electrification strategy and boost its “ambition to play a major role in the ‘third era’ of aviation”. The acquisition is expected to complete late this year, following a period of employee consultation.
“Electrification is set to have as dramatic an impact on aviation as the replacement of piston engines by gas turbines. We are at the dawn of the third era of aviation, which will bring a new class of quieter and cleaner air transport to the skies,” Rob Watson, Director for Rolls-Royce Electrical, commented in the statement.
Analysts on British engine maker
The 15 analysts offering 12-month targets for the Rolls-Royce share price for the Financial Times have a median target of 1,090.00p, with a high estimate of 1,288.00p and a low estimate of 760.00p. As of Junе 17, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.