Rolls-Royce Inc. recently announced that it is evaluating the future of its merchant shipping business and may sell it. Then there was speculation in the market that Wartsila could become a buyer.(welding overlay,flange,pipe spooling).
It is reported that not long ago, Rolls-Royce is restructuring its business structure and plans to reduce the five operating organizations to three core organizations - civil aviation, defense and power sector, the former part of the defense industry in the maritime sector will be divided into the national defense sector under. Rollo said it will conduct a strategic assessment of its merchant shipping department.
Rowe's profitability is also affected by the continued downturn in the offshore oil and gas industry. Rollo had said in November last year that sluggish demand in the oil and gas market will continue to affect its maritime sector and the company will seek to reduce its costs.
Although ineffective, Rolls-Royce merchant shipping is undoubtedly a premium asset. Rolls-Royce is the industry benchmark for both shipbuilding and ship design, and is the industry leader in smart and unmanned marine applications.
In the meantime, Wartsila, the recent rebound in efficiency, is also looking for acquisitions in the market that are in line with the company's growth strategy, including the Rolls-Royce segment of the vessel, as Rolls-Royce is making a strategic assessment of its ship division .
Jaako Eskola, Wärtsilä's president and chief executive, did not deny any interest in the business of acquiring merchant ships, but did not give a completely positive answer.
Regarding the acquisition of Rolls-Royce shipbuilding business, Jaakko Eskola said, "If we see any interesting company in the market that fits our strategy, we will undoubtedly buy it." We need to think about what we can get right now What, and what the final plan is. "
The results show that 2017 is a good year for Wartsila, new orders rose 15% to 5.64 billion euros, net sales also increased by 3% to 4.92 billion euros. In the fourth quarter of 2017 just past, new orders for Wartsila continued to climb, with orders for new orders up 14% over the third quarter and hand-to-order amounts to EUR1.15b ($ 1.87bn). All of these laid the foundation for the continued development of Wartsia.
As early as 2014, Rolls-Royce had considered the acquisition of Wärtsilä marine engines business, but the negotiations ended without success. With the passage of time, Wartsila is now a potential buyer of Rolls-Royce merchant shipping.(welding overlay,flange,pipe spooling).
In addition to Wartsila, there are many companies interested in acquiring Rolls-Royce merchants. According to Bloomberg's report, other potential buyers of Rolls-Royce merchants include Aker ASA in Norway and Hyundai Heavy Industries in Korea, but these companies are currently refusing to comment on the media.
It is understood that Rolls-Royce will conduct a strategic assessment of the merchant shipping business in 2018 and will announce the latest results in due course.