According to a report from The Guardian this weekend, Spanish shipbuilder Navantia is currently engaged in ‘exclusive negotiations’ to purchase the financially troubled Belfast shipyard Harland & Wolff Group Holdings PLC (AIM: HARL).
Navantia has previously given financial aid to Harland & Wolff to help maintain a £1.6 billion shipbuilding contract.
Reports suggest that Navantia might acquire all four of Harland & Wolff’s yards in Belfast, Devon, the Isle of Lewis, and Fife.
These yards are operated as the parent company’s subsidiaries and are not undergoing insolvency proceedings.
The proposed plans could preserve up to 1,000 jobs.
Harland & Wolff, renowned for constructing the Titanic and other significant ocean liners in the early 20th century, went into administration in September after suffering several severe contract losses.
The company had sought a £200 million government bailout to address escalating debts, which was rejected by Labour due to concerns over “a very substantial risk that taxpayer money would be lost.”
Teneo, the appointed administrators, are managing the insolvency process.
It is reported that Teneo is working towards a deal that would keep the shipyards operational and enable them to secure new contracts.
