Mazagon Dock Shipbuilders, a state-owned company in India, said that it would purchase a controlling interest in Colombo Dockyard of Sri Lanka in a deal worth not more than $52,96 million in order to expand its shipbuilding business.

According to a Friday regulatory filing, the transaction, which involves the acquisition of at minimum 51% equity in Colombo Dockyard will close within six month. After that, the Sri Lankan Shipbuilder will be a part Mazagon Dock Shipbuilders.

Colombo Dockyard is not available to comment immediately outside of business hours.

Mazagon Dock Shipbuilders builds warships and subs. The deal gives India a strategic foothold on the island nation in the Indian Ocean where New Delhi has been vying for influence with Beijing for years.

According to the filings, Colombo Dockyard had a turnover of 25.45 billion Sri Lankan Rupees (US$84.89m) in 2024. Mazagon Dock Shipbuilders, on the other hand, reported 114.32 trillion Indian Rupees ($1.34bn) for the fiscal year ending March 2025.

(source: Reuters)