Ministers seek state aid advice over Harland & Wolff rescue deal
Sky News has learnt that ministers have drafted in external advisers to evaluate whether or now now not the renegotiation of a Ministry of Defence contract to facilitate a sale of the company to Spain’s Navantia would comply with European speak back guidelines.
The Treasury is neatly-known to have indicated in latest days that it’s minded to back the proposed deal, though officials cautioned that a final resolution had but to be taken.
Sky News revealed final week that Navantia desired to staunch more favourable terms for a deal to originate three Fleet Solid Abet ships (FSS) for the Royal Navy, with the Financial Events therefore reporting that the recut contract would successfully necessitate the govt. paying £300m more for the vessels.
The Department for Enterprise and Switch refused to commentary on the identity of the laws company serious referring to the project, though two sources within the correct occupation said they believed it to be Ashurst.
One supply said the transfer to retain external attorneys became as soon as “identical outdated” in a allege similar to this.
H&W’s London-listed father or mother company collapsed into administration in September after seeing a plea for taxpayer abet rejected.
Navantia, which is already partnering with H&W on the Royal Navy contract, is neatly-known to had been offering financing liquidity to the company on a week-by-week foundation since the company’s filing for administration.
One supply conclude to the Spanish company now now not too prolonged within the past urged Sky News that the destiny of bigger than 1,000 workers at H&W’s four UK shipyards now hinged on the govt. agreeing to renegotiate the FSS contract “on more life like terms”.
The British and Spanish governments have also been engaged in discussions referring to the capacity deal.
It’s far likely to incorporate jobs ensures if the UK govt is of the same opinion to recut the FSS deal.
H&W’s four shipyards are in Belfast; Appledore, Devon; Arnish on the Isle of Lewis; and Methil, Fife.
Beneath the deal provisionally agreed in latest days, Navantia would do all four shipyards despite easiest having a latest hobby within the Belfast location.
Bankers at Rothschild had been working a sale path of to gauge hobby within the company and its sources since September.
Founded 163 years within the past, Harland and Wolff constructed the most rotten passenger ship in maritime history, with The Gargantuan sinking on its maiden voyage across the Atlantic in 1912.
The govt.declined to commentary.