{"id":112725,"date":"2021-04-23T15:33:01","date_gmt":"2021-04-23T15:33:01","guid":{"rendered":"https:\/\/fin2me.com\/?p=112725"},"modified":"2021-04-23T15:33:01","modified_gmt":"2021-04-23T15:33:01","slug":"rolls-royce-in-constructive-talks-with-spain-over-itp-aero-sale","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/rolls-royce-in-constructive-talks-with-spain-over-itp-aero-sale\/","title":{"rendered":"Rolls-Royce in constructive talks with Spain over ITP Aero sale"},"content":{"rendered":"
LONDON (Reuters) – British engineering company Rolls-Royce said it was in constructive talks with Spain over the sale of its Spanish unit ITP Aero, after a media report said Madrid could block the deal.<\/p> 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 after the pandemic.<\/p>\n Bloomberg reported earlier on Friday that the disposal could be blocked by Spain unless the buyer could offer reassurances about ITP\u2019s future, citing a person familiar with the matter.<\/p>\n 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.<\/p>\n \u201cThe Spanish and Basque governments are important stakeholders and there is an ongoing and constructive dialogue with them,\u201d a Rolls-Royce spokesman said in an emailed statement.<\/p>\n 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.<\/p>\n \u201cAs a result, it is obviously very important to us that a new owner is able to continue to invest in ITP Aero\u2019s technology, innovation and workforce,\u201d the spokesman said.<\/p>\n Last month, Rolls-Royce\u2019s disposal plan suffered a setback when Norway halted the sale of its maritime engine maker to a Russian company on national security grounds.<\/p>\n Asked about ITP Aero, the Spanish industry ministry did not immediately respond.<\/p>\n Shares in Rolls-Royce traded down 1.7% at 101 pence at 1356 GMT.<\/p>\n A source close to the matter said that Rolls-Royce was well aware that any deal for ITP would need to include assurances from the buyer.<\/p>\n Bloomberg said Spain was concerned Rolls-Royce could sell ITP to a private equity fund, naming KKR, Bain Capital and TowerBrook Capital as being in the running, and the financial buyers would not have an industrial plan for the unit.<\/p>\n