Rolls-royce in talks with Spain over ITP Aero sale

LONDON: British engineering company RollsRoyce said it was in constructive talks with Spain over the sale of its Spanish unit ITP Aero, ater a media report said Madrid could block the deal.

Rolls-royce is hoping to secure up to 1.5 billion euros ($1.8 billion) from the sale of turbine blade-maker ITP Aero, which it has put on the block as part of a 2-billion-pound ($2.8 billion) asset sale to help repair its balance sheet ater the pandemic.

Rolls-royce said the relevant Spanish authorities — ITP is headquartered in the Basque region of Spain — were involved in the process and talks were positive.

“The Spanish and Basque governments are important stakeholders and there is an ongoing and constructive dialogue with them,” a RollsRoyce spokesman said in a statement.

Asked about ITP, the Spanish industry ministry declined to comment.

Rolls-royce said there were multiple interested parties in the sale process, adding that ITP would also continue to be a supplier to Rolls-royce for many decades to come.

“As a result, it is obviously very important to us that a new owner is able to continue to invest in ITP Aero’s technology, innovation and workforce,” the spokesman said.

Last month, Rolls-royce’s disposal plan suffered a setback when Norway halted the sale of its maritime engine maker to a Russian company on national security grounds.

Shares in Rolls-royce traded down 1.7 per cent at 101 pence at 1356 GMT.