Rolls-Royce In Talks With Siemens On Energy Gas Turbine, Compressor Business

(RTTNews) - Responding to media reports, UK-based jet engine maker Rolls-Royce Group Plc. (RR.L, RYCEY.PK) Tuesday confirmed that it is in talks with German conglomerate Siemens AG (SI) regarding the sale of its Energy gas turbine and compressor business.

The business supplies aero-derivative gas turbines, compressor systems and related services to customers in the Oil and Gas and Power Generation sectors. Terms of the potential deal are not yet known.

Rolls-Royce said the talks have not concluded and it would make a further announcement in due course.

The company's annual report for 2013 shows that the energy unit generated 68 percent of its revenue from oil and gas operations. Twenty-one percent was brought in by power generation and 11 percent came from the nuclear industry.

Siemens, which has expressed interest in French conglomerate Alstom SA (AOMFF.PK, ALS.L), does not make turbines for the aviation industry.

RR.L closed down 0.4 percent at 1,021.00 pence. Siemens was up 0.6 percent in Frankfurt to settle at 94.15 euros.