The Babcock International Group has announced that it will acquire the remaining 50 percent interest in its Australian Naval Ship Management (NSM) joint venture with Cimic (ex-Leighton), a Sydney-based conglomerate, for $42.2 million (around AUD$60 million), subject to approvals.
What began in 2012 as a joint venture to only maintain the Royal Australian Navy’s ANZAC class frigates under the Warship Asset Management Agreement, now also encompasses two Canberra Class Landing Helicopter Docks (LHD) and 12 LHD Landing Craft.
Babcock’s marine business not only designs and builds warships such as the Type 31 frigate for the UK’s Royal Navy, but also provides naval platform support. NSM has approximately 300 employees.
Babcock CEO David Lockwood stated: “We’re very proud of the success of NSM since its formation nearly a decade ago. We look forward to continuing to provide innovative and highly skilled support to the Australian Defence Force as we further develop our presence in this important market.”
by Andrew Drwiega