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Italy's Fincantieri negotiating
to buy Davie Yards

2011-04-05

Financially-truggling Davie Yards of Lévis, Québec has announced negotiations with Fincantieri, a large Italian shipbuilder based in Trieste within the Finmeccanica Group, in a bid to position itself to win part of a multi-billion naval contract from the Canadian government.

Gustav Johan Nydal, chief executive of Norwegian-controlled Davie, said that Fincantieri and DRS Technologies Canada, a defence electronics subsidiary, "have the strength and technical expertise that we are seeking to take over the Lévis yard."

Davie recently won a court order extending creditor protection until May 19, giving more time for the takeover negotiations to wrap up.

When shortlisting  domestic shipyards for a multi-year $35 billion contract for replacing naval and Coast Guard vessels, the Ottawa authorities made it clear that bidders must prove their financial viability.

Davie is seeking to become one of the two selected shipyards under the National Shipbuilding Procurement Strategy. (Photo: Pierre Terrien)

 
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