Babcock agrees to buy out Australian joint venture partner

Engineering services firm Babcock has entered into a sales and purchase agreement to acquire the remaining 50% interest in its Australian Naval Ship Management joint venture for AUD $60.0m (£32.0m).

Babcock said on Tuesday that the acquisition will allow its Australasian arm to further strengthen the breadth of its support to the Australian Defence Force's maritime capability and provide additional capability for the nation's current and future maritime programmes.

The FTSE 250-listed firm added that the joint venture was established in 2012 to maintain of the Royal Australian Navy's ANZAC class frigates and today, supports not only the Anzac ships but also two Canberra Class landing helicopter docks and 12 LHD landing craft.

Chief executive David Lockwood said: "We're very proud of the success of NSM since its formation nearly a decade ago. We look forward to continuing to provide innovative and highly skilled support to the Australian Defence Force as we further develop our presence in this important market."