Rolls-Royce in advanced talks to sell Bergen, source says

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LONDON, Aug 3 - Britain's Rolls-Royce has in advanced talks to sell its Norwegian mobile engine producer Bergen to the UK engineering group Langley Holdings, a source close to the matter said. A disposal plan is now in progress.

Rolls-Royce aims to remove 2 billion pounds of shares by 2022 as part of plans to repair finances who have been battered by the pandemic. Airlines flew less often, cutting one of Rolls' main sources of income.

Bergen is a small part of the asset sale plan - a previous attempted sale valued it at 150 million euros - but any deal will reassure investors that the programme remains on track.

Rolls-Royce declined to comment on the deal, which could be announced on Thursday when the group is expected to publish early results.

Investors are more interested in an update on the sale of Rolls's Spanish unit ITP Aero, which the company hopes will go for up to 1.5 billion euros.

Sky News reported earlier on Tuesday that Rolls had chosen Bergen to buy privately-held Langley Holdings as the buyer for Langley Holdings.

Rolls-Royce had previously agreed to sell Bergen to a Norwegian company, but the deal was blocked by Russia on national security grounds in March.

The potential new buyer, Langley, is based in Nottinghamshire, central England, employs 4,600 people and has units in Germany, France and Italy, where it is a manufacturer of advanced electric motors and generators. Bergen is based on the west coast of Britain and has been owned for more than 20 years by Norwegian Rolls-Royce Ltd. It supplies the NATO and member Norway's navy as well as the global shipping industry.