Ralph Robins News

In yet another case of giant-eating-giant consolidation, Rolls-Royce Plc has made a surprise $933 million agreed cash offer for Vickers Plc, in a move aimed at making Rolls-Royce the global leader in marine power systems. The acquisition would place a significant portion of marine propulsion products - including the Ulstein, Aquamaster, Kamewa, Rauma, Brown Brothers and Mitchell Bearings brands - in one company's control, affecting operators of all vessel types, from VLCCs to tugboats. Ironically, the move comes just as Vickers put the finishing touches on its own revived industrial empire, by acquiring several marine propulsion equipment suppliers in order to dominate a once fragmented piece of the international maritime market.

British engineer Rolls-Royce Plc launched a surprise $933 million agreed cash offer for Vickers Plc, in a move aimed at making it the global leader in marine power systems. However, the deal prompted concern from some analysts who felt Rolls-Royce may be paying too much merely to bolster its marine propulsion business. Given this focus on marine, Vickers' land-based defense business, which includes battle tanks and armored vehicles, is seen as surplus to requirements and Rolls-Royce Chairman Ralph Robins said that the sale of this division was inevitable.

Just as soon as Vickers Plc put the finishing touches on its revived industrial empire - acquiring a myriad of marine propulsion equipment suppliers in order to dominate a once fragmented piece of the international maritime market - wheels have been set in motion to acquire the goliath itself. Last week Rolls-Royce Plc launched a surprise $933 million (576 million pound) agreed cash offer for Vickers Plc in a move aimed at making it the global leader in marine power systems. But the deal, pitched at a 53 percent premium over Vickers share price last Friday, prompted concern from some analysts who felt Rolls-Royce may be paying too much merely to bolster its marine propulsion business. "This was a big surprise.