Rolls-Royce Holdings PLC (LSE:RR.) has agreed to sell its off-highway engines business to German group Deutz for what it says is a figure in the high double-digit million euros.
The arm being sold develops diesel engines for agricultural vehicles and construction machinery that are manufactured by Daimler (ETR:DAI) Truck for Rolls-Royce Power Systems.
Rolls added that going forward, the focus in the Power Systems division will be on power generation, governmental, marine, service and the future field of battery energy storage systems.
Tufan Erginbilgic, Rolls-Royce's chief executive, said: "This is a clear illustration of our strategy in action. Becoming more focused on the markets where we know Rolls-Royce can win.
“Power Systems is an integral part of our organisation with a strong brand and real advantage in power generation, governmental and marine end-markets, where we see the strongest demand and an opportunity for better returns from our power-dense and reliable solutions.”
Shares rose by 1% to 306p.