Rolls-Royce sells commercial marine unit for £500 million

London: British engine maker Rolls-Royce announced on Friday it has agreed to sell its troubled commercial marine business to Norwegian industrial group Kongsberg for 500 million pounds.

The deal, worth 661 million or 566 million euros, is part of a massive overhaul led by chief executive Warren East, Rolls-Royce said in a statement.

The news comes three weeks after the London-listed company launched plans to axe 4,600 mainly British management roles by 2020 to further slash costs.

The commercial marine division employs about 3,600 staff mainly in the Nordic region.

Rolls-Royce expects net proceeds of 350 million to 400 million pounds from the transaction, which will conclude early next year. East has overseen a drastic restructuring since his appointment as chief executive in 2015.