Spain’s state-owned shipbuilder is expected to confirm on Thursday that it is buying Harland and Wolff, the Belfast shipyard best known for the Titanic.
Navantia has been in exclusive negotiations since October after the Harland and Wolff holding company went into administration.
All jobs at the company are expected to be saved in the deal, which is expected to include Harland and Wolff locations in Scotland and England.
The BBC understands that the announcement is expected to be made in parliament on Thursday.
Navantia’s main shipyard is in Cadiz in southern Spain [Getty Images]
The government may announce that it is improving the terms of that agreement to reflect increased costs.
The deal will be presented as the first fruits of the government’s Brexit “reset”.
Navantia, which is 100% owned by the Spanish government, has been an important recipient of European Commission funding as part of the European Defense Fund.
Joining the fund is a possible goal of the UK-EU security reset, which is set to be discussed at a conference early in the new year.
Spain’s economy minister responsible for state-owned enterprises, Carlos Cuerpo, met Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds in London last month.
Navantia already has a business relationship with Harland and Wolf. It is the main contractor on a project to build three support ships for the Royal Navy, with Harland and Wolff acting as a UK subcontractor.
The company employs around 1,200 people in Belfast, Appledore in England and Methil and Arnish in Scotland.
Navantia’s main shipyard is in Cadiz in southern Spain.
It employs more than 4,000 people and has an annual turnover of around €1.3bn (£835m).
What is the history of Harland & Wolff?
In 2019, H&W’s Norwegian owners at the time withdrew financial support [Getty Images]
Harland and Wolff was founded in 1861 by Yorkshireman Edward Harland and his German business partner, Gustav Wolff.
By the early 20th century, Harland and Wolff dominated shipbuilding worldwide and were the world’s leading shipbuilders.
However, during the Second World War it went from crisis to crisis and was under British rule from 1977 to 1989.
In 2019, its Norwegian owners at the time withdrew financial support and the business fell into bankruptcy, having not built a ship in a generation.
The government may announce an improved contract that will reflect increased costs [Getty Images]
It was bought by Infrastrata, a small London-based energy firm that had no significant experience in marine engineering.
Infrastrata later changed its name to Harland and Wolff and in 2022 won the Royal Navy contract as part of a consortium led by Navantia.
However, capital losses increased as it ramped up its operations and became increasingly dependent on high-interest loans from US lender Riverstone.
The company sought a £200m government guarantee to refinance the loan but it was rejected as too risky for the taxpayer.
Its holding company went into administration in September and restructuring specialist Russell Downs was appointed to run the business and find a new owner.
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