Friedrichshafen, 9 March 2011. Daimler AG and Rolls-Royce Group plc today announced their decision to make a joint offer to acquire the entire share capital of Tognum AG. The Management Board will review the offer and in due course issue a statement to Tognum’s shareholders in accordance with Section 27 of the German Securities Acquisition and Takeover Act (WpÜG).
The Board of Management of Tognum AG in principle welcomes this step. “We would create one of the world’s technology leaders in propulsion systems and distributed energy systems,” said Volker Heuer, CEO of Tognum AG: “For us, Daimler and Rolls-Royce would be two financially strong strategic investors, who have made a clear commitment to Tognum’s continued internal and external growth strategy. It would put us in an excellent position to play an active role in shaping the further consolidation of the market.”
An alliance with Daimler and Rolls-Royce would strengthen the company’s market position. For Daimler and Rolls-Royce, Tognum is to become the platform for future growth in the markets for propulsion systems and distributed energy systems.
The product portfolios and market access of the companies would complement each other attractively and, for Tognum and Rolls-Royce in particular, open up new possibilities for working together. Combined, the two companies would cover the entire spectrum of medium and high-speed diesel engines for complete propulsion systems. Moreover, they would benefit from complementary additions to their energy product portfolios. As both companies offer different products in similar markets, this would create significant procurement and sales synergies. The move would also open up additional growth opportunities to Tognum in the BRIC countries.
A partnership would give Tognum AG additional investment security for the future. Under an agreement in principle, Daimler and Rolls-Royce declared their intention to secure Tognum AG’s technology leadership through expenditure on research and development and investments in property, plant and equipment. As a technology leader, the company has already carried out extensive research to arm itself for the increasingly stricter emissions regulations, especially from 2014. It is also envisaged that Rolls-Royce would take over Tognum’s fuel cell business, which the company had already decided to discontinue for commercial reasons.
Under the agreement in principle, Daimler and Rolls-Royce furthermore declared their intention that Friedrichshafen should remain the headquarters of the company as well as the research, development and production site for propulsion systems and energy systems. The new parent company would also be domiciled in Friedrichshafen. “This step would strengthen Friedrichshafen as the headquarters of Tognum AG,” said Joachim Coers, Deputy Chairman of Tognum AG. “It is particularly important to us that no job cuts are planned and that the Südwestmetall framework collective wage agreement would continue to apply,” added Coers.
As yet, no agreement regarding the offer price was achieved.