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India's Mazagon's acquisition of Colombo Dockyard
Daily FT
|July 04, 2025
THE announcement of the acquisition of a 51% controlling stake in Colombo Dockyard PLC (Dockyard) by India's state-owned Mazagon Dock Shipbuilders (MDL) for $ 52.96 million from Japan-based Onomichi Dockyard last week captured both the local and international media interest. The finalisation of the transaction is expected to be completed within six months.
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Last Wednesday, in a stock exchange filing, the premier shipbuilding and heavy engineering firm disclosed that MDL was selected via a competitive process and the Indian company will obtain the control of the firm through the forthcoming rights issue. The development comes following the company's disclosure last month that its Board was having discussions with a potential strategic investor to infuse capital and stabilise the company's financial position. Earlier, speculation was rife that divestment of Dockyard was to take place in April coinciding with the visit of the Indian Premier Narendra Modi.
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