Rolls-Royce (RR.) is in talks with Spanish IT and defence company Indra Sistemas (Sp:IDR), over its interest in acquiring a majority stake in the engineer’s Spanish aircraft engine manufacturing business, ITP Aero.
ITP is the ninth largest aircraft engine and components company in the world by revenue, securing turnover of €880m (£783.6m) in 2018. Rolls-Royce took full control of ITP in 2016, paying €720m for the 53.1 per cent stake it did not previously own. Under its ‘ITP Aero 2020’ strategic plan, the engineer announced during its last financial year an investment of €14.2m in new facilities in Derio, Spain, for the design and manufacturing of engine external parts.
Rolls-Royce said it intends to retain a “long-term relationship” with its “key partner” ITP, and that there is no guarantee that any deal will take place. Indra could not be reached for comment.
