Spanish government owned Navantia to buy Harland & Wolff…

Sky News reporting on takeover plans for Harland & Wolff. From Mark Kleinman:

Harland & Wolff (H&W), the shipyard-owner which built the Titanic, is closing on a government-backed rescue deal with a Spanish shipping industry group.

Sky News can reveal that Navantia has won approval from Downing Street to acquire H&W’s four UK shipyards in a transaction which could be formally agreed as early as next week.

If confirmed on the expected terms, the agreement would salvage more than 1,000 British industrial manufacturing jobs.

Under the deal, they said, Navantia is expected to pay tens of millions of pounds for H&W’s assets.

It has also secured the government’s backing for a renegotiated contract held by the Belfast-based company to build three Fleet Solid Support (FSS) ships for the Royal Navy.

The precise details of the revised contract were unclear on Saturday morning, although one insider said the government and Navantia had “compromised” on a request from the Spanish company for a £300m improvement in its value.

Navantia, which is already a partner of H&W on the Royal Navy contract, has been providing financing liquidity to the company on a week-by-week basis since the company’s filing for administration.

H&W’s four shipyards are in Belfast; Appledore, Devon; Arnish on the Isle of Lewis; and Methil, Fife.

I was tempted to use the headline ‘Catholics take over shipyards,’ but these days, it’s not about religion any more; it’s all about the Pounds, or in this case, Euro.

Harland & Wolff only employs about 500 people now in Belfast, a long way from its heyday. At its peak in the early 20th century, it employed over 35,000 workers. You could argue this is more about sentiment than economics, but any jobs saved are welcomed. Still, it is good news that the historic shipyards have a future.

Brian O'Neill

I help to manage Slugger by taking care of the site as well as running our live events. My background is in business, marketing and IT. My politics tend towards middle-of-the-road pragmatism, I am not a member of any political party. Oddly for a member of the Slugger team, I am not that interested in daily politics, preferring to write about big ideas in society. When not stuck in front of a screen, I am a parkrun Run Director.