Rolls-Royce Holdings has restarted the auction of its maritime engine manufacturing division after the Norwegian government vetoed its sale to a Russian-based buyer.

Sky News has learnt that the FTSE-100 engineering group has asked prospective bidders for Bergen Engines to submit indicative offers later this month in a renewed attempt to offload the business.

Rolls-Royce’s efforts to sell Bergen and raise cash to strengthen its COVID-battered balance sheet suffered a blow in March when Oslo objected to TMH, a Russian company, acquiring it on national security grounds.

The Derby-based group is now expected to seek clearance from Norway’s government for any subsequent deal, which could raise more than £100m.

Deloitte is advising Rolls-Royce on the sale.

Bergen is one of a number of businesses which have been earmarked for disposal by Rolls-Royce as it attempts to overcome its gravest crisis in decades.

It is trying to secure a deal that would be approved by the Spanish government to sell ITP Aero, a Basque Region-headquartered maker of aircraft engines and turbines.

Warren East, Rolls-Royce’s chief executive, has set a £2bn target for asset sale proceeds after raising more than £5bn from the issue of new debt and equity.

Mr East has been forced to axe thousands of jobs, many of them in Britain, after seeing its aviation customers grounded for much of the last year.

In March, the company reported a £4bn loss, prompting it to resort to drastic measures including a two-week summer shutdown of its engine factories.

A Rolls-Royce spokesman declined to comment on Friday.

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