July 24, 2019 / 5:18 PM / a month ago

Rolls-Royce ends talks with Indra on ITP Aero stake with no deal

FILE PHOTO: A visitor looks inside the Rolls-Royce Trent XWB-97 engines of an Airbus A350-900, during the 53rd International Paris Air Show at Le Bourget Airport near Paris, France, June 17, 2019. REUTERS/Pascal Rossignol/File Photo

(Reuters) - Rolls-Royce said on Wednesday that its discussions with Indra Sistemas SA, which had expressed interest in acquiring a majority stake in the British group’s Spanish business ITP Aero, have ended without agreement.

Rolls-Royce, which makes engines for the Boeing 787 Dreamliner and the Airbus A350 XWB, had said last month that Indra expressed an interest in taking a majority stake in ITP Aero.

Spanish website La Informacion, which first reported the news, had said the deal would value ITP at 1.5 billion euros ($1.67 billion), against Indra’s then market cap of 1.7 billion euros.

“ITP Aero will remain a separately reported business segment and a core part of Rolls-Royce,” the company said on Wednesday.

It gave no further details.

Rolls-Royce bought 53.1% of the Spain-based aircraft engine and components maker ITP it did not already own from privately owned SENER Grupo de Ingeniería SA in 2017 for 720 million euros ($811.01 million).

The business posted underlying revenue of 779 million pounds in 2018, making up just over 5% of Rolls-Royce’s total sales.

($1 = 0.8971 euros)

Reporting by Sangameswaran S in Bengaluru; Editing by Susan Fenton and Emelia Sithole-Matarise

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