British engineering firm Rolls-Royce announced today that it has signed an agreement to sell its civil nuclear instrumentation and control (I&C) business to France's Framatome. No UK-based employees are impacted as the agreement does not include Rolls-Royce's civil nuclear business, or small modular reactor activities.
The transaction is expected to be completed at the beginning of the second half of 2021, subject to closing conditions, including regulatory approvals. In the meantime, the two companies remain independent and will continue to operate as normal. Financial details of the transaction are not being disclosed.
"This transaction marks a further simplification of our business and contributes towards our target to generate over GBP2 billion from disposals, as announced on 27 August 2020," Rolls-Royce CEO Warren East said. "We also believe it represents the best outcome for this part of our civil nuclear operations and its people."
The I&C business includes all the Rolls-Royce activities and teams based in Grenoble (France), Prague (the Czech Republic), Beijing and Shenzhen (China). In 2019, the I&C business subject to the agreement had 550 employees and reported revenues of EUR94 million (USD114 million), which were consolidated within the results of Rolls-Royce's Power Systems business.
"The purchase of the Rolls-Royce Civil Nuclear I&C business aligns with our strategy to ensure the continuity of a strong skill base and to expand our footprint for long-term operations," said Bernard Fontana, CEO of Framatome. "We are committed to helping our customers sustain their nuclear power plants as reliable and competitive sources of low-carbon electricity well into the future."
Framatome said it will incorporate Rolls-Royce's products and technologies, which are installed in 150 operating reactors worldwide, as part of its I&C portfolio. The transaction will allow Framatome to integrate all safety critical functions, to serve its clients and particularly the French nuclear plants, it added.