Shares in Rolls-Royce have jumped by almost 7% after an announcement that it is embarking on a further simplification of the business with the potential sale of its commercial marine operation.
There will be a reduction from five operating businesses to three core units based around Civil Aerospace, Defence and Power Systems.
As part of this exercise, it plans to consolidate the Naval Marine and Nuclear Submarines operations within the existing Defence business, and Civil Nuclear operations within its Power Systems business.
In a statement, the company said that these actions will allow it to better capitalise on its relationships with Defence customers and its market leading widebody position within Civil Aerospace, while strengthening its technology capabilities across a broad range of power generation applications.
It expects the subsequent restructuring to deliver an additional reduction in costs and assist it in improving performance from its core businesses.