Rolls-Royce has been given the green light from the Spanish government to sell its Spanish engine manufacturing business for £1.5bn.
The sale of Basque-based ITP Aero, to a consortium of investors, forms part of a string of disposals since 2020.
The London-listed engineering giant announced during the height of the pandemic that it sought to raise £2bn amid market turbulence and raw material inflation.
The funds will be used to help rebuild Rolls-Royce’s balance sheet, in a bid to lure in investors in the medium term.
Rolls-Royce added that ITP Aero, which builds aircraft engines and turbines, will remain a key player in the firm’s civil aerospace and defence programmes.
The consortium, led by US private equity giant Bain Capital, reportedly includes Sapa and JB Capital.
“This agreement represents an attractive outcome for both Rolls-Royce and ITP Aero and we are also grateful to the Spanish and Basque governments for the constructive discussions we have held with them during the process,” chief executive Warren East said in September last year, when the deal was first announced.
“A financially, technologically and industrially strong ITP Aero is also vital to Rolls-Royce.”