VT Group could sell its Portsmouth ship yard to BAE Systems to help it secure Babcock International’s support services business as part of a takeover attempt the two are considering of Britain’s naval ship-building industry.
The Financial Times says a joint bid is not expected before next week at the earliest but The Independent says doubts are growing that a bid will happen at all.
BAE would acquire Babcock’s naval yard in Rosyth under the preferred deal. BAE also owns yards in Glasgow and Cumbria.
The Ministry of Defence has so far not raised objections to the possibility of BAE owning most of Britain’s naval yards.
References: Financial Times 28/03/06 page 22, The Independent 28/03/06 page 53
