OSLO (NORWAY) – As a part of assessing the security implications of selling the engines made by Rolls-Royce to the country’s navy, the justice ministry of Norway has suspended a planned asset sale of around 150 million euro. Norway’s NSM security agency is assessing the sale of Bergen Engines to a company controlled by Russia’s TMH Group.
Britain’s Rolls-Royce announced the planned sale on Feb. 4 as part of a disposal plan aimed at helping the maker of engines for aircraft and ships survive the pandemic. The ministry added that any ongoing due diligence linked to the sale must be put on hold until Norwegian authorities have concluded their investigation.
Justice Minister Monica Maeland commented about the step saying, “It may be that a sale of Bergen Engines AS to TMH Group could jeopardise national security interests.” “It is, therefore, necessary to pause this process to establish a sufficient basis of facts on which to consider the transfer,” she added.
Bergen Engines is, among other things, a supplier to NATO member Norway’s navy.
While Norway welcomes foreign investment, this must be balanced against potential threats to national security, the ministry added.
“The security situation requires us to closely monitor foreign investments in strategic industries,” Maeland said, adding she plans to give a separate briefing on the matter to parliament.
Bergen Engines makes medium-speed gas and diesel engines for marine and power generation customers and employs about 950 people. It generated revenue of 239 million pounds in 2019, Rolls-Royce said when announcing the planned sale.
