Rolls-Royce to complete sale of Spanish unit in 'weeks' - report

Rolls-Royce is set to complete its €1.7bn sale of ITP Aero within the next few weeks, it was reported on Monday.

The engineer agreed last September to sell the Spanish business, which makes the engines for the Eurofighter Typhoon, to US private equity firm Bain Capital.

It was expected to complete last Thursday, but the blue chip missed the deadline, the Mail on Sunday reported. However, the newspaper, quoting unnamed City sources, said Spanish regulators were preparing to sign off the deal "in the next few weeks".

As at 1015 BST, shares in Rolls-Royce were ahead 1% at 87.11p.

Rolls-Royce, like many others in the aerospace sector, was hit hard by the pandemic. In response, it has cut jobs and shored up its balance sheet through a share sale, loans and a planned £2bn of disposals. ITP Aero is the biggest sale announced to date.

Its sale is understood to have been delayed by Madrid, however, the Mail on Sunday reported, with officials keen to ensure Spanish investors are also involved. Discussions with Bain are ongoing, the newspaper noted.