Rolls-Royce, which provides products and services to more than 20,000 commercial and naval vessels in the offshore, merchant, naval and submarines markets, is set to take control of Scandinavian Electric Holding (SEH), a supplier of system packages for diesel-electric marine propulsion systems.

Rolls-Royce announced that it would buy 100 per cent of the equity of SEH for a cash consideration of NOK430 million (£43 million). The deal will integrate SEH into Rolls-Royce's marine business.

The acquisition, from Borea Opportunity II AS, requires approval from the Norwegian competition authorities and marks the next step in Rolls-Royce’s expansion into the marine market.

According to Rolls-Royce, the acquisition is consistent with its strategy of adding new capabilities and expanding into integrated power systems. SEH has a strong track record in offshore supply and service vessels, and will extend its system design capability for Rolls-Royce’s UT design offshore support and service vessels.

Rolls-Royce has some 650 UT Design vessels either in service or on order. The vessels, designed by Rolls-Royce incorporate a range of its marine equipment including diesel engines, deck machinery, thrusters and automation and control systems.