Insider Media Limited

Rolls-Royce has officially launched its bid to buy German company Tognum AG. The Derby-based manufacturer announced this morning that the official acceptance period for its £2.7bn offer, put forward through a joint venture with Daimler AG, had begun. The bid was launched as Rolls-Royce unveiled plans to create two new factories on the Sheffield-Rotherham border.

Rolls-Royce announced last month its plans to launch a takeover bid for Tognum AG alongside Daimler. The pair entered into a 50:50 joint venture, now known to be named Engine Holding GmbH, to make the €24 per share offer. It officially launched the bid this morning.

Tognum shareholders can tender shares from today until 18 May 2011.

The offer document has now been approved by the German authority Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), said the two companies.

Daimler already holds a stake of 28.4 per cent of Tognum AG, which will be tendered at the offer price.

Rolls-Royce said: “Under the joint ownership of Daimler and Rolls-Royce, Tognum will be well-positioned as a global leader in the marine, distributed power generation, offshore oil and gas and industrial applications markets establishing a strong platform for future growth in a global market worth more than €30bn a year.

“The partners intend to maintain the current manufacturing sites and are confident that the growth strategy will secure jobs and lead to further opportunities. In addition to significantly strengthening Tognum’s future competitiveness, and broadening the product range, systems and service capabilities, the combination also enhances the company’s access to emerging markets.”

The announcement this morning coincides with Rolls-Royce’s announcement that it has launched a public consultation about basing two factories in South Yorkshire. The decision to look at the Advanced Manufacturing Park on the Sheffield-Rotherham border has been made two years after the business announced plans to invest £300m in four factories in the UK.

Rolls Royce said it intends to submit plans to Rotherham Council next month.

One of the factories will manufacture, assemble and test components for civil nuclear power stations. The facility will have strong links with the Nuclear Advanced Manufacturing Research Centre, in which Rolls-Royce is an industrial partner.

The other factory will manufacture turbine blades for Rolls-Royce's high-thrust engines.

Rolls-Royce said these investments are being made as it to responds to anticipated growth in its aerospace and civil nuclear markets.