- Rolls-Royce said it had agreed to acquire the Siemens' electric aerospace business, for an undisclosed sum.

The British engineering company said the move would accelerate the delivery of its electrification strategy and boost its ambition to play a major role in the 'third era' of aviation.

The acquisition was expected to complete late 2019, following a period of employee consultation.

The business, based in Germany and Hungary, employed around 180 specialist electrical designers and engineers.

Rolls-Royce and Siemens had already been working together on the so-called E-Fan X demonstrator project which, when flying, would demonstrate hybrid electric propulsion at a scale required to power regional aircraft.

'Electrification is set to have as dramatic an impact on aviation as the replacement of piston engines by gas turbines,' Rolls-Royce electrical director Rob Watson said.

'We are at the dawn of the third era of aviation, which will bring a new class of quieter and cleaner air transport to the skies.'

At 1:21pm: [LON:RR.] RollsRoyce Group PLC share price was +15.6p at 922.6p

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