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2w ago

Mazagon Dock Seals Deal to Acquire 51% of Colombo Dockyard for Rs 452 Crore

Regulatory approvals are pending to close the purchase, extending MDL’s operations into the Indian Ocean region.

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Mazagon Dock Shipbuilders Limited
Mazagon Dock Shipbuilders acquires majority stake in Colombo Dockyard for $52.96 million

Overview

  • Mazagon Dock Shipbuilders signed definitive agreements with Japan’s Onomichi Dockyard to buy a controlling 51% stake in Colombo Dockyard PLC for Rs 452 crore.
  • The acquisition combines a primary infusion of new securities with secondary share purchases to shore up Colombo Dockyard’s debt-laden balance sheet.
  • This marks MDL’s first international venture, aligning with India’s Maritime Amrit Kaal Vision 2047 and Make-in-India defence manufacturing initiatives.
  • The Port of Colombo facility will provide MDL a strategic foothold in a key maritime corridor and enhance its shipbuilding, repair and R&D capabilities.
  • Completion remains subject to customary regulatory and closing approvals, with the transaction on track to close within the next four to six months.