Rolls-Royce ‘Optimistic’ on Agreeing Energy Unit Sale to Siemens

Rolls-Royce Holdings Group Plc (RR/) said there’s a good chance that it will agree a sale of most of its energy unit to Siemens AG as part of a plan to revive sales growth and focus on businesses where it’s a major player.

“I’m reasonably optimistic that we’ll get something done,” Chief Executive Officer John Rishton told reporters at the company’s annual shareholder meeting in London, adding that the power arm is “sub-scale” and can’t effectively compete with either the German company or General Electric Co. (GE:US)

Rolls-Royce is negotiating with Siemens on the disposal of operations that supply equipment derived from its core aero-engine product line to the oil and gas industry and power utilities. Rishton said today that the move would improve the jet-engine maker’s focus as it seeks to revive growth that’s forecast to be flat this year for the first time in a decade.