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Cabinet would block take-over of submarine engine maker

Rolls-Royce's nuclear engine business might be nationalised if the organisation’s financial problems persist, the Financial Times has reported.

The company’s reactor cores will power the submarines which will carry the next generation of Trident nuclear missiles but five profit warnings in two years have diminished the UK government’s confidence that the company could resist a hostile takeover, the FT said.

Warren East was appointed chief executive of the company in July 2015 and has since been trying to reduce operational costs. He has suggested that the company might benefit from conceding defeat in certain markets and withdrawing altogether. But there are concerns that a takeover might be attempted before he can put the company in a stronger position.

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