London : British engine maker Rolls-Royce announced on Friday it has agreed to sell its troubled commercial marine business to Norwegian industrial group Kongsberg for 500 million pounds.
The deal, worth $661 million or 566 million euros, is part of a massive overhaul led by chief executive Warren East, Rolls-Royce said.
The news comes three weeks after the London-listed company launched plans to axe 4,600 mainly British management roles by 2020 to further slash costs.
The commercial marine division employs about 3,600 staff mainly in the Nordic region. Rolls-Royce expects net proceeds of 350 million to 400 million pounds from the transaction, which will conclude early next year.
East has overseen a drastic restructuring since his appointment as chief executive in 2015. “This transaction builds on the actions we have taken over the last two years to simplify our business,” he said. “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.” The company had in January launched a strategic review of the division