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German engineering giant Siemens, which is seeking to buy French firm Alstom's energy division, is in talks to purchase Rolls-Royce's energy production arm, AFP reports according to the British aircraft engine maker.
German engineering giant Siemens, which is seeking to buy French firm Alstom's energy division, is in talks to purchase Rolls-Royce's energy production arm, AFP reports according to the British aircraft engine maker.
"Following media reports, Rolls-Royce confirms it is in talks with Siemens regarding the sale of its energy gas turbine and compressor business," the London-listed group said in a statement that gave no indication of price.
"This supplies aero-derivative gas turbines, compressor systems and related services to customers in the oil and gas and power generation sectors.
"These talks have not concluded and we will make a further announcement in due course."
A company spokesman added that the deal would exclude its nuclear power interests.
A source close to the matter told AFP that the division was worth about £900 million ($1.5 billion, 1.1 billion euros) -- the same level as its annual turnover excluding the nuclear power business.
The entire division has an annual turnover of £1.538 billion.
The news comes one day after Siemens revealed it had decided to make an offer for Alstom's energy unit, in a bid to thwart a rival bid from US giant General Electric.
The brief Rolls-Royce statement was issued to the London Stock Exchange on Wednesday, after being released by the company overnight.
