ENGINEERING giant Rolls-Royce has agreed to sell its commercial marine business to Norwegian firm Kongsberg for £500m.
The Derby-based manufacturer said its net proceeds will be around £350m to £400m after taking pension liabilities and other costs into account.
The announcement comes as Rolls-Royce enacts a sweeping restructuring plan aimed at saving £400m per year.
The transaction has been approved by the boards of both companies and is expected to close in the first quarter of 2019, subject to clearance from regulatory bodies.
'This transaction builds on the actions we have taken over the last two years to simplify our business,’ said chief executive Warren East.
‘The sale of our commercial marine business will enable us to focus on our three core businesses and on meeting the vital power needs of our customers.’
A spokesperson for Rolls-Royce confirmed no jobs in Portsmouth were at risk.
The firm’s site at Broad Oak Business Park in Hilsea is part of its former naval business, which became part of Rolls-Royce Defence in January.