Spanish authorities approve £1.5bn Rolls-Royce deal

The Spanish government has given the green light to a deal, which will see Rolls-Royce sell one of its businesses to a consortium of investors for around £1.5 billion.

Back in September last year, the engineering giant, which has its civil aerospace and defence divisions in Derby, announced it signed a definitive agreement with Bain Capital Private Equity to sell aerospace and engine component supplier ITP Aero.

Bain is a consortium of investors, which includes the interests of Spanish co-investors SAPA and JB Capital.

The sale is a key element of Rolls-Royce’s disposal programme, announced two years ago, to raise proceeds of at least £2 billion.

The cash from the ITP Aero sale will be used to help rebuild Rolls-Royce’s balance sheet.

In a statement, the company said: “ITP Aero will remain a key strategic supplier and partner for Rolls-Royce across both civil aerospace and defence programmes.”