Tuesday, April 10, 2007

Bharati buys out UK shipyard major Swan

Bharati Shipyard, the country’s second-largest private sector ship-builder, is understood to have acquired the UK-based Swan Hunter Shipyard for an undisclosed amount.The acquisition might be one of the biggest deals till date in the domestic shipbuilding industry. A comparable new shipyard would have cost Rs 200-250 crore.
A spokesperson for Bharati Shipyard declined to comment, saying, “As a company policy we do not react on market speculation.”

This acquisition assumes significance given the fact that all international shipyards are overbooked till 2009-end as the general economic upswing has resulted in a demand for new ships.Moreover, the International Maritime Organisation has brought in a number of regulations leading to scrapping of old vessels. This has also fuelled demand.

Read more in The Business Standard article.

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