BAE, VT to create shipbuilding join venture
UK defence firms BAE Systems and and VT Group are to create the UK's biggest shipbuilder through a joint venture which is likely to carry out the bulk of a 3.8 bln stg government contract to build two aircraft carriers, the Sunday Times reported without citing sources.
The joint venture, which will bring together BAE's shipbuilding operations on the Clyde and VT's operations in Portsmouth, is expected to be 55 pct-owned by BAE.
According to the Times, confirmation of the joint venture will prompt the government to give the aircraft carrier projects the final go-ahead. The Ministry of Defence has encouraged the rationalisation of British dockyards, and has made approval of the carrier projects conditional on the BAE/VT deal.
The joint venture, which will bring together BAE's shipbuilding operations on the Clyde and VT's operations in Portsmouth, is expected to be 55 pct-owned by BAE.
According to the Times, confirmation of the joint venture will prompt the government to give the aircraft carrier projects the final go-ahead. The Ministry of Defence has encouraged the rationalisation of British dockyards, and has made approval of the carrier projects conditional on the BAE/VT deal.
