The Norwegian government has decided to block the potential sale of Norway- registered Bergen Engines AG, a part of the Rolls Royce group, to the Russia based Transmashholding.
The Minister of Justice and Public Security of Norway, Monica Meland, speaking at a hearing in the Norwegian parliament, Storting, said on March 23, "the sale would strengthen Russia's military capabilities in a way that would clearly be contrary to the security interests of Norway and its allies," Meland said.
Rolls Royce had said last month that the deal with the Russian TMH Group (Transmashholding) was part of its plan to deal with the aftermath of the pandemic. The Norwegian opposition has since criticized the government for its slow response to the acquisition deal.
Her statement said, “Rolls-Royce plc (Rolls-Royce) had notified the Norwegian authorities on 15 December 2020 that the group would initiate a process of selling the Norwegian-registered company Bergen Engines AS (Bergen Engines). The notice stated that Transmashholding Group (TMH Group) was one of the potential buyers. It was further stated that the actual purchase will be carried out by TMH International AG (TMHI), a Swiss-registered company that is 100% owned by the Russian-registered TMH Group. Bergen Engines is a manufacturer and supplier of e.g. engines and generators for both civilian and military side in Norway and several allied countries, including the United States.”
Giving reasons for blocking the sale, Meland said: