Rolls-Royce shares surge after venture deals
Shares in Rolls-Royce increased by 9.9 per cent after concluding deals with rival Pratt & Whitney.
The Derby manufacturer raised $1.5bn (£950m) by selling its International Aero Engines joint venture to Pratt & Whitney, a unit of United Technologies. International Aero Engines makes engines for Airbus and Boeing.
The deal will give Rolls-Royce more than a £140m boost to its annual operating profit, the business said.
Rolls-Royce also entered into a joint venture with Pratt and General Electric which will involve developing engines for future mid-size aircraft.
The news lifted the FTSE-100 with Rolls-Royce shares jumping by 9.9 per cent to 688 pence by the close of the day.
Mark King, president of civil aerospace at Rolls-Royce, said: "We are building on many years of successful collaboration with Pratt & Whitney in this segment to develop advanced aero engines, which we are confident will set new standards in aviation technology, performance and fuel efficiency."
