- FRANKFURT: Daimler and Rolls-Royce have secured a 60 percent stake in engine maker Tognum with a sweetened takeover bid, expanding their footprint in the growing industrial diesel engine sector.
Last month Daimler and Rolls were forced to sweeten their offer to 26 euros (23.16 pounds) a share, raising it from an initial 24 euros a share bid and valuing the diesel and gas engine maker at 3.4 billion euros.
Daimler and Rolls said on Monday that winning control laid a strong foundation for future co-operation between the three companies.
The deal will allow Rolls to expand its marine and diesel power business, while Daimler will re-establish closer ties with a major buyer of its truck diesel engines, which are retooled by Tognum for specialized uses.
Daimler and Rolls hope to tap into a global market worth more than 30 billion euros a year and that is growing at above-average rates.
The bidding consortium said it had received acceptances representing 58.35 percent of the share capital of Tognum and bought a 1.52 percent stake on the stock market during the acceptance period.
Daimler already owned 28.4 percent of Tognum.
Daimler once owned all of Tognum but sold it to Swedish private equity group EQT for 1.6 billion euros in equity and debt in December 2005. It then bought back more than 20 percent in April 2008, the year after its former unit went public.

