Tognum welcomes Daimler/Rolls-Royce offer

Tognum AG has welcomed an offer made by Daimler and the Rolls-Royce Group.

Negotiation strategies could be called for after Tognum AG welcomed a joint offer made by Daimler AG and the Rolls-Royce Group.

The German industrial concern announced its approval of the bid, which is now being reviewed by the company's management board.

Volker Heuer, chief executive officer of Tognum, explained that, if an agreement is reached, one of the world's "leaders in propulsion" and "distributed energy systems" would be created.

"For us, Daimler and Rolls-Royce would be two financially strong strategic investors, who have made a clear commitment to Tognum's continued internal and external growth strategy," he said.

Mr Heuer added the move would put his organisation in an "excellent position" in regard to "shaping" further market consolidation.

However, Tognum reiterated that no agreement on price has been achieved between the parties.

The company started life as the Luftfahzeug-Motorenbau GmbH as an airship engine manufacturer before branching out to the automotive sector and converting itself into Tognum AG in 2007.