Kongsberg Gruppen

Related Party Transaction • Apr 1, 2022

Kongsberg Maritime and Bergen Engines agree to end trading agreement

Kongsberg Maritime and Bergen Engines agree to end trading agreement

Since 2019, Kongsberg Maritime has been the ‘single route to market’ for engines produced by Bergen Engines for the commercial maritime market. This agreement of exclusivity is now about to be terminated.

Kongsberg Maritime AS and Bergen Engines AS has today signed Heads of Terms that points to a termination of the trading agreement by 30 June 2022, following a short transitional period. In addition to new sales, the agreement has also covered services for engines in operation.

The existing trading agreement was a continuation of a long-standing relationship, and was entered into following KONGSBERG’s acquisition of Rolls-Royce Commercial Marine in 2019, when Bergen Engines stayed on as being owned by Rolls-Royce plc. The Norwegian engine manufacturer was at the turn of last year sold from Rolls-Royce to Langley Holdings plc.

The original duration of the exclusive agreement was five years. Going forward, Kongsberg Maritime can continue to include Bergen’s marine engines into their system sales, in the same way the company cooperates with other suppliers of power solutions to ships.

In 2021 Kongsberg Maritime’s revenues from the cooperation with Bergen Engines, represented 679 MNOK. The termination will see Bergen Engines taking over a defined spare parts inventory from Kongsberg Maritime, and also an undisclosed compensation for the loss of future business.