Rolls-Royce Holdings PLC (LSE:RR.) is said to be in talks with UK-Based Langley Holdings over the sale of its Bergen maritime engine business after Norwegian authorities blocked a sale to a Russian company in March.
A deal might be announced with the aero-engine maker’s interim results on Thursday, Sky News reported.
Rolls-Royce agreed to sell Bergen to Russian firm TMH in February, for GBP130mln, but the sale was halted by Norway on national security grounds.
Engineering conglomerate Langley already owns groups that work for NATO meaning there should be no such problems if a deal can be agreed.
Rolls put the Bergen business up for sale again in May as part of a disposal programme designed to raise GBP2bn.
Talks are underway to sell its ITP Aero business and also its stake in Air Tanker to help generate funds to tide it over the slump in civil aviation caused by Covid-19.
Rolls-Royce posted a loss of GBP4bn in the year to March and was forced to raised GBP5bn through a combination of loans and equity alongside 7,000 job cuts.
Shares rose 0.5% to 104p.