Defence contractor Babcock International (LSE:BAB) will complete the full takeover of its Australian naval joint venture.
The group announced this morning that it had entered into an agreement to acquire the remaining 50% interest in its Australian Naval Ship Management (NSM) following the long-term joint venture, for approximately £32mln.
It marks the completion of a joint venture started in 2012 to maintain Royal Australian Navy’s ANZAC class frigates.
With around 300 employees, the business also supports Australia’s Anzae class, two Canberra Class landing helicoper docks and 12 LHD landing craft.
NSM reported revenue of A$254mln for the year ended 31 March 2021, with Babcock holding equity of 50% on those results at that time.
Babcock’s increased footprint in Australia follows renewed focus on the country’s defence capabilities after the signing of the AUKUS agreement, in which the US and UK would help supply Australia with a fleet of nuclear submarines at a cost of at least $70bn