The government has brought in city lawyers to review a proposed bailout deal from Harland & Wolff, the owner of the shipyard that built the Titanic.
Sky News has learned that ministers have called in external advisers to assess whether the renegotiation of a Ministry of Defense contract to facilitate the sale of the company to Spain’s Navantia would comply with EU rules on State aid.
The Treasury reportedly indicated in recent days that it was willing to support the proposed deal, although officials cautioned that a final decision had not yet been made.
Sky News revealed last week that Navantia was seeking more favorable terms for a deal to build three solid support ships (FSS) for the Royal Navy, with the Financial Times subsequently reporting that the intersected contract would effectively require the government pays £300 million more. for ships.
The Department of Business and Commerce declined to comment on the identity of the law firm involved in the project, although two sources in the legal profession said they believed it to be Ashurst.
A source said the decision to retain outside lawyers was “standard” in a scenario like this.
H&W’s London-listed parent company collapsed and was placed into administration in September after seeing an appeal for taxpayer support rejected.
Navantia, which already partners with H&W on the Royal Navy contract, has reportedly been providing financial liquidity to the company on a weekly basis since the company’s application for administration was filed.
Rishi Sunak, left, visits the Harland & Wolff shipyard factory accompanied by Northern Ireland Secretary of State Chris Heaton-Harris, right, and H&W CEO John Wood, in Belfast.
A source close to the Spanish company recently told Sky News that the fate of more than 1,000 workers at H&W’s four UK shipyards now depends on the government agreeing to renegotiate the FSS contract “on more realistic terms “.
The British and Spanish governments have also started discussions on the potential deal.
It is likely to incorporate job guarantees if the UK government agrees to return to the FSS agreement.
H&W’s four shipyards are in Belfast; Appledore, Devon; Arnish on the Isle of Lewis; and Methil, Fife.
Under the deal tentatively agreed in recent days, Navantia would acquire the four shipyards although it currently only has a stake in the Belfast site.
Rothschild bankers have been carrying out a sales process since September to assess interest in the company and its assets.
Founded 163 years ago, Harland and Wolff built the most infamous passenger ship in maritime history, with the Titanic sinking on her maiden voyage across the Atlantic in 1912.
The government declined to comment.