VT and BAE Agree on Shipbuilding JV
VT Group has finalized its shipbuilding joint venture with BAE Systems (BAESY).
Under the agreement -- the terms of which are substantially unchanged from those set out in the framework agreement in July 2007 -- the BVT Surface Fleet Ltd joint venture will be owned 45 percent by VT and 55 percent by BAE Systems.
The joint venture, under which VT has an option to sell its stake to BAE for at least $745 million, is key to VT's attempts to focus entirely on support services, leaving behind its origins as a shipbuilder, Reuters said.
Last July, gave the go-ahead for plans to build two aircraft carriers, triggering the deal to merge operations at BAE and VT, 's two largest shipbuilders.
The formation of BVT comes ahead of the full manufacturing contract for the aircraft carrier programme that will be signed by the UK Ministry of Defence and BVT shortly, VT said.
John Parker has been appointed non-executive chairman designate and Alan Johnston chief executive designate of BVT.