Spain’s state-owned shipbuilder Navantia is thought to be leading the race to buy Harland & Wolff’s Belfast shipyard, with upwards of 20 companies reportedly expressing some form of interest.
While Harland & Wolff’s London-listed parent entity is set to fall into administration this week, the operating companies behind the four shipyards it owns are being kept out of the process, with investment bankers from Rothschild & Co managing the sale.
The shipyards in Belfast, Appledore, Arnish and Methil, as well as the group’s Islandmagee gas storage project, are all being lined up for new ownership.
The Unite union said it understands more than 20 companies have shown an interest in either purchasing all or part of the company, or providing an injection of investment.
The most logical outcome for Harland & Wolff could see Spanish shipbuilder Navantia step in to acquire at least one of the shipyards.
The state-owned company’s UK entity led the successful Team Resolute bid for the £1.6 billion fleet solid support (FSS) ship programme for the Ministry of Defence (MoD).
The value of the deal to Harland & Wolff is reportedly around £700m, with the involvement of its Belfast and Appledore yards hailed as a significant milestone in the UK government’s national shipbuilding strategy.
Some trade unions in Britain were less enthused with 40% of the contract going to Spain.
Team Resolute won the tender ahead of an all-British rival bid involving Babcock and BAE Systems, which had proposed building the three vessels near Edinburgh.
Sky News has reported that Babcock International is weighing up a bid for some of the Harland & Wolff assets.
- At least 20 companies express interest in buying into Harland & Wolff - UniteOpens in new window
- Harland & Wolff prepare for administration but shipyards could remain open under new ownersOpens in new window
- Government guarantee for Harland & Wolff posed too great a risk to taxpayer money - UK Business SecretaryOpens in new window
It’s thought the London-listed defence contractor, which previously owned the Appledore shipyard, is particularly interested in the Belfast site.
Michael Flacks, who specialises in acquiring distressed assets, has also previously expressed an interest in the Belfast shipyard.
Speaking on BBC Radio Four’s Today programme, the executive chairman of Harland & Wolff, Russell Downs said keeping the four shipyards together was “sensible from an operating perspective”.
He added: “We’ve got a number of interested parties and some of them are looking for the business as a whole, including our gas storage facility just outside of Belfast.
“Others are more specific about what they’re interested in, we’ll just have to see what the offers come in as and make a decision at that point.”
East Belfast MP Gavin Robinson said the “mood music is good” surrounding interest in the Belfast shipyard.
The DUP MP confirmed he had discussions with a number of interested parties, but described Navantia as the “most obvious” bidder.
“Clearly they have a unique financial interest in Belfast particularly given the contract that is there, and the knowledge that to proceed with that contract it has to have UK content, and it was Belfast that was giving them that UK content,” he told BBC Radio Ulster.
An exercise in seeking new investment or a buyer for the company undertaken by Rothschild & Co is due to conclude on Wednesday.
