Press release | Date: 10/03/2021 | Ministry of Justice and Public Security| No: 30 – 2021
The National Security Authority (NSM) today notified Rolls-Royce that the Norwegian government is examining whether the planned sale of Bergen Engines AS to TMH Group should be blocked under the Security Act.
‘The government has been exploring this issue over the past few months, and it cannot be ruled out that the sale of Bergen Engines AS to TMH Group may pose a risk to national security interests. It is therefore necessary to pause this process in order to procure sufficient facts to enable an assessment of the change in ownership,’ says Monica Mæland, Minister of Justice and Public Security.
The National Security Authority (NSM) operates under the auspices of the Ministry of Justice and Public Security, which also manages the implementation of the Security Act.
Bergen Engines has not been subject to the Security Act and does not have a supplier declaration or security agreement in place with the Norwegian Armed Forces. However, while Bergen Engines is not currently subject to Section 1-3 of the Security Act, and Section 10-1 of the same act relating to ownership controls is thus not applicable, this does not rule out the use of various other parts of the Security Act in this case.
‘In cases like this one, there will always be some elements that cannot be discussed publicly. The government is now working to map out all aspects relating to the possible sale of Bergen Engines,’ says Mæland.
It is assumed that any transfer of knowledge in connection with the due diligence process and related activities will cease until this matter has been resolved.
‘We want to have an open economy that makes Norway an attractive investment prospect for foreign investors. At the same time, we are aware that foreign investments may pose a threat to national security interests. The current security situation means that we must closely monitor foreign investments taking place in strategic sectors,’ says Mæland.