Rolls-Royce trades energy for £1bn

Put national pride to one side and the decision by Rolls-Royce (RR.) to sell most of its energy division to German rival Siemens looks like good business. Rolls will get £785m in cash for the gas turbine and compressors operation, plus another £200m for a 25-year licensing and parts deal. That's more than expected and equivalent to a hefty 14 times last year's underlying profit of £72m. It's all part of chief executive John Rishton's focus on the core business. Rolls will have no problems spending the money.