LONDON (Thomson Financial) - British defence group BAE Systems Plc. and UK
shipbuilder VT Group Plc. will this week seal their long-awaited joint venture
to build the Royal Navy's two new aircraft carriers, according to a report.
The pair are expected to sign the contract on Tuesday before the government
officially places its 4 billion pounds order for the carriers at a ceremony in
Portsmouth, the Sunday Times reported.
Government indecision over which projects to include in its latest defence
budget settlement delayed the signing of the deal, which will result in the
combination of most of the two companies' shipbuilding activities.
There had been fears that funding for the carriers would be cut, although
industry sources say other defence projects are now more likely to be hit.
philip.waller@thomsonreuters.com
paw/hjp
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|