TMH Disappointed With Norway's Decision To Block Purchase Of Bergen Engines Plant

Umer Jamshaid Published March 23, 2021 | 09:54 PM

Russian rail equipment maker TMH is disappointed with the Norwegian authorities' decision to apply the security law to the purchase of a Bergen Engines engine plant in that country and will be deeply disappointed if the deal is finally blocked, the Russian manufacturer said on Tuesday

MOSCOW (UrduPoint News / Sputnik - 23rd March, 2021) Russian rail equipment maker TMH is disappointed with the Norwegian authorities' decision to apply the security law to the purchase of a Bergen Engines engine plant in that country and will be deeply disappointed if the deal is finally blocked, the Russian manufacturer said on Tuesday.

TMH announced in early February that it was acquiring Norway-based middle-speed diesel and gas engine manufacturer Bergen Engines from the British Rolls-Royce Group. However, in March, the Norwegian Justice Ministry said that the authorities could suspend the deal in accordance with the security law. Norway's Justice Minister Monica Malann said on Tuesday that the government had decided to stop the sale of the Bergen Engines plant to the Russian company.

"TMH is disappointed with the decision of the Norwegian authorities to apply the provisions of the security law to the acquisition of Bergen Engines.

Throughout the transaction process, TMH remained as transparent as possible regarding the ownership structure and development plans of Bergen Engines. During the preparation of the TMH deal, nothing was found that could indicate the applicability of the Norwegian security law to the transaction," the statement says.

The company noted that TMH had repeatedly declared its desire and readiness to look for forms and solutions that would allow the transaction to be exempted from the law, if, in the opinion of the Norwegian authorities, it is still applied.

"Now TMH will have to assess all the commercial, financial and legal consequences of the decision of the Norwegian authorities. TMH continues to monitor the development of the situation and will be deeply disappointed if a decision is made to permanently block the deal," the company added.