The Australian Naval Ship Management joint venture was established in 2012 to maintain the Royal Australian Navy's Anzac-class frigates. (Babcock International)
UK engineering firm Babcock International Group has agreed to buy out its partner in the Australian Naval Ship Management (NSM) joint venture, expanding its support for the Royal Australian Navy, Babcock announced on 15 February.
Babcock, which owns 50% of NSM, will acquire the other 50% from Australian engineering firm UGL for AUD60 million (USD43 million). The transaction will close after receiving “customary approvals”, the announcement said.
UGL, which is part of the CIMIC Group, is exiting the joint venture to focus on defence investments that it fully controls, according to a CIMIC spokesperson.
Established in 2012 NSM maintains several types of vessels for the Australian navy, including Anzac-class frigates, Canberra-class landing helicopter dock (LHD) amphibious assault ships, and LHD landing craft. It employs about 300 people and generated revenue of AUD254 million in the fiscal year that ended on 31 March 2021.
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