Babcock considering DML takeover
Engineering group Babcock International has held talks about taking over the consortium that runs the UK's Devonport naval base. Babcock, which runs the Rosyth naval dockyard and the Faslane submarine base, has held exploratory discussions about acquiring a majority stake in Devonport Management Ltd (DML).
To succeed, Babcock would have to reach agreement with KBR, the former Halliburton subsidiary with a majority stake in Devonport Management Limited (DML). The other shareholders are civil engineer Balfour Beatty PLC and oil industry equipment maker Weir Group PLC. The move could, however, face opposition or competition from defence group BAE Systems which owns the submarine yard at Barrow-in-Furness. BAE which last week announced plans to team up with VT Group, could launch its own bid for DML and merge it into the new joint venture.
This flurry of activity comes a month after the MoD tried to block a share flotation by KBR. The firm was asked to delay the launch - or risk losing its contract to operate Devonport, western Europe's largest naval port. There were concerns that Devonport might be compromised by the listing.
The dockyard, the only place capable of refitting and refueling the UK?s nuclear submarine fleet, is owned by DML, in which KBR has a controlling 51% share.
Before the listing, the British Government said it feared that once KBR was separated from parent oil services firm Halliburton, it might not have adequate funds to run Devonport effectively.
To succeed, Babcock would have to reach agreement with KBR, the former Halliburton subsidiary with a majority stake in Devonport Management Limited (DML). The other shareholders are civil engineer Balfour Beatty PLC and oil industry equipment maker Weir Group PLC. The move could, however, face opposition or competition from defence group BAE Systems which owns the submarine yard at Barrow-in-Furness. BAE which last week announced plans to team up with VT Group, could launch its own bid for DML and merge it into the new joint venture.
This flurry of activity comes a month after the MoD tried to block a share flotation by KBR. The firm was asked to delay the launch - or risk losing its contract to operate Devonport, western Europe's largest naval port. There were concerns that Devonport might be compromised by the listing.
The dockyard, the only place capable of refitting and refueling the UK?s nuclear submarine fleet, is owned by DML, in which KBR has a controlling 51% share.
Before the listing, the British Government said it feared that once KBR was separated from parent oil services firm Halliburton, it might not have adequate funds to run Devonport effectively.
- Company Name:
- Babcock considering DML takeover
