Bergen Engines case

Bergen Engines case

The Bergen Engines case was a Norwegian political controversy in 2021 concerning the planned sale of the engine manufacturer Bergen Engines from Rolls-Royce Holdings to the Russian owned company TMH International. The proposed transaction triggered political debate in Norway and assessments of potential national security implications. The Norwegian government blocked the sale on 26 March 2021 under provisions of the Norwegian Security Act.

Background

Bergen Engines is a manufacturer and supplier of medium-speed diesel and gas engines as well as generator sets for both civilian and military use in Norway and several allied countries.[1] The company operates a manufacturing facility at Hordvikneset in Bergen.[2]

Engines from Bergen Engines have been delivered to vessels operated by the Norwegian Coast Guard, the intelligence ship FS Marjata and ships from allied countries.[3][4]

The company was owned by Rolls-Royce Holdings, which in 2020 decided to sell the business as part of a restructuring of the group.[5]

Course of events

On 15 December 2020 Rolls-Royce notified Norwegian authorities that the company planned to sell the Norwegian registered firm Bergen Engines.[5] The notification was sent to the Ministry of Foreign Affairs, which forwarded the information the following day to the Ministry of Justice and Public Security and the Ministry of Trade, Industry and Fisheries, as well as to the Norwegian Police Security Service and the Norwegian Intelligence Service.[5]

In January 2021 several ministries and security agencies began assessing potential national security implications of a sale. After an external alert to the Ministry of Trade, Industry and Fisheries on 11 January, the matter was discussed among senior civil servants in the Ministry of Justice and Public Security, the Ministry of Trade, Industry and Fisheries and the Ministry of Defence. At the same time, the Norwegian Police Security Service and the Norwegian Intelligence Service were tasked with preparing assessments of possible security risks related to the transaction.[5]

On 4 February 2021 Rolls-Royce announced that an agreement had been reached to sell Bergen Engines to TMH International, a Swiss-registered company affiliated with the Russian industrial group Transmashholding.[5]

In February and March 2021 the Norwegian newspapers Bergens Tidende and E24 published a series of investigative articles about the planned sale, including reports on the ownership structure of the company and links to the industrial group and Russian oligarchs.[6][7][8] The reporting also described plans for cooperation between Transmashholding and the Russian state-owned shipbuilder United Shipbuilding Corporation on the development of marine engines.[9]

After the sale agreement became known, Norwegian authorities began reviewing the transaction under the provisions of the Security Act. On 9 March 2021 the Norwegian National Security Authority stated that Rolls-Royce had been notified that the government was considering stopping the sale.[10] Rolls-Royce announced that the transaction had been paused pending the authorities’ investigation.[8]

The Norwegian Defence Logistics Organisation and Norwegian Defence Materiel Agency stated that they were assessing how a change of ownership might affect existing contracts and future deliveries.[3]

On 23 March, Minister of Justice and Public Security Monica Mæland presented a statement on the matter to the Storting (the Norwegian parliament).[2] On 26 March the government formally decided to stop the sale of Bergen Engines to TMH International. The decision was made through a royal resolution adopted in the King in Council, based on section 2-5 of the Security Act.[5] The decision prohibited the transfer of shares, assets, technology and information related to the transaction.[11]

The case was later discussed in the Storting following statements from the government. The Standing Committee on Scrutiny and Constitutional Affairs also held a hearing in 2021 on the government’s handling of the matter.[11]

After the sale to TMH International was blocked, Rolls-Royce continued the process of finding a new buyer for the business. In December 2021 it was announced that Bergen Engines would instead be sold to the British industrial group Langley Holdings.[12]

Reactions

The proposed sale prompted reactions from several political parties in the Storting. Representatives from the Centre Party, the Labour Party and the Socialist Left Party requested that the government present a statement to parliament about the matter.[13][14][15]

Several opposition parties also argued that the sale should be stopped. Representatives from the Centre Party, Red Party, the Green Party and the Progress Party stated that the government should intervene on grounds of national security.[16][17][14]

Representatives from the Progress Party and the Red Party also stated that the issue could lead to a motion of no confidence against the Minister of Defence if the government did not intervene.[18][17]

The Christian Democratic Party stated that it had confidence that the government would make the necessary assessments under the Security Act.[19]

References

  1. ^ Tidende), Bendik Støren (Bergens (2021-02-25). "USAs marine bruker motorer fra Bergen: – Vi vurderer nå risikoen". E24 (in Norwegian Bokmål). Retrieved 2026-03-14. {{cite web}}: |first2= missing |last2= (help); Unknown parameter |etternavn2= ignored (help)
  2. ^ a b NTB (2021-03-23). "Stanser salget av Bergen Engines til russisk selskap". Tu.no (in Norwegian). Retrieved 2026-03-14.
  3. ^ a b Tidende), Gerhard Flaaten (Bergens (2021-02-21). "Kystvaktkontrakt under lupen etter russisk fabrikkoppkjøp". E24 (in Norwegian Bokmål). Retrieved 2026-03-14. {{cite web}}: |first2= missing |last2= (help); |first3= missing |last3= (help); Unknown parameter |etternavn2= ignored (help); Unknown parameter |etternavn3= ignored (help)
  4. ^ Tidende), Gerhard Flaaten (Bergens (2021-02-24). "Motorene til E-tjenestens superskip er levert av Bergen Engines, som nå overtas av russere". E24 (in Norwegian Bokmål). Retrieved 2026-03-14. {{cite web}}: |first2= missing |last2= (help); |first3= missing |last3= (help); Unknown parameter |etternavn2= ignored (help); Unknown parameter |etternavn3= ignored (help)
  5. ^ a b c d e f "Stans av salget av Bergen Engines AS" (PDF). Regjeringen. 26 March 2021. Retrieved 15 March 2026.
  6. ^ Tidende), Gerhard Flaaten (Bergens (2021-02-04). "Russlands største togprodusent kjøper Bergen Engines fra Rolls-Royce". E24 (in Norwegian Bokmål). Retrieved 2026-03-14.
  7. ^ "Kystvaktkontrakt under lupen etter russisk fabrikkoppkjøp". www.bt.no (in Norwegian Bokmål). 2021-02-21. Retrieved 2026-03-14. {{cite web}}: Unknown parameter |authors= ignored (help)
  8. ^ a b Larsen, Foto: Bjørn Erik (2021-03-09). "Rolls-Royce stanser foreløpig salget av Bergen Engines til russisk selskap". www.bt.no (in Norwegian Bokmål). Retrieved 2026-03-14.
  9. ^ Tidende), Gerhard Flaaten (Bergens (2021-03-22). "Her avslører kjøperen av Bergen Engines at de lager motorer til russiske krigsskip". E24 (in Norwegian Bokmål). Retrieved 2026-03-14. {{cite web}}: |first2= missing |last2= (help); |first3= missing |last3= (help); Unknown parameter |etternavn2= ignored (help); Unknown parameter |etternavn3= ignored (help)
  10. ^ Solberg, Emilie (2021-03-09). "Vurderer å stanse salget av Bergen Engines". DN.no (in Norwegian Bokmål). Retrieved 2026-03-14.
  11. ^ a b "Innstilling fra utenriks- og forsvarskomiteen om Redegjørelse av justis- og beredskapsministeren om planlagt salg av Bergen Engines AS". Stortinget (in Norwegian). 2021-05-20. Retrieved 2026-03-14.
  12. ^ Støren, Bendik; Edvardsen, Arne; Flaaten, Gerhard; Strand, Tron (2021-08-03). "Ny kjøper klar for Bergen Engines: – Begynnelsen på en ny æra". E24 (in Norwegian Bokmål). Retrieved 2026-03-14.
  13. ^ Tidende), Arne Edvardsen (Bergens (2021-03-03). "Ber regjeringen komme til Stortinget for å redegjøre om salget av Bergen Engines til russiske kjøpere". E24 (in Norwegian Bokmål). Retrieved 2026-03-14.
  14. ^ a b Tidende), Bendik Støren (Bergens (2021-03-03). "Ap reagerer på forsvarsministerens håndtering: – Han er jo ikke russisk handelsminister". E24 (in Norwegian Bokmål). Retrieved 2026-03-14. {{cite web}}: |first2= missing |last2= (help); Unknown parameter |etternavn2= ignored (help)
  15. ^ Tidende, Bergens (2021-03-04). "SV om Bergen Engines: – Har regjeringen sovet i timen?". www.bt.no (in Norwegian Bokmål). Retrieved 2026-03-14.
  16. ^ NTB, Foto: Berit Roald / (2021-02-24). "Sp: – Regjeringen må stoppe salg av norsk selskap til Russland". www.bt.no (in Norwegian Bokmål). Retrieved 2026-03-14.
  17. ^ a b Tidende, Bergens (2021-03-03). "Rødt om Bergen Engines: – Salget må stanses, mistillit kan bli aktuelt". www.bt.no (in Norwegian Bokmål). Retrieved 2026-03-14.
  18. ^ Tidende, Bergens (2021-02-25). "Bergen Engines-salget: – Vil kunne tvinge frem mistillitsforslag". www.bt.no (in Norwegian Bokmål). Retrieved 2026-03-14.
  19. ^ Tidende, Bergens (2021-03-04). "KrF om Bergen Engines: - Har fått forsikringer fra forsvarsministeren". www.bt.no (in Norwegian Bokmål). Retrieved 2026-03-14.
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