Deutz rises after it agrees to take over off-highway engines business from Rolls-Royce

Deutz AG

14/12/2023 07:22

** Shares in Deutz  DEZG.DE  rise around 6% in early trade
after the German diesel engines maker said it has agreed to take
over sales and service operations for selected off-highway
engines from Rolls-Royce RR.L 's Power Systems 
    ** Deutz said it is to take over sales and operations for
Daimler Truck off-highway engines with up to 480kW power
presumably from mid-2024
    ** It expects additional revenue of 300 million
euros($327.03 million) per year with an EBIT margin above the
current group margin, after the conclusion of the agreement
    ** "Seems to be a bargain and so shares rose around 5% after
hours," a local trader says
    ** The expected purchase price for the engine portfolio is a
high double-digit million-euro amount, the company said
    ** Deutz's stock is seen at the top of Germany's small-cap
index  .SDAXI 


($1 = 0.9173 euros)

 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))