PracticeConsultingPwC sells Cammell yards to rival

PwC sells Cammell yards to rival

PricewaterhouseCoopers has accepted a bid for two of the Cammell Laird shipyards from its biggest rival A&P Group Holdings - the bid least favoured among workers and the unions.

A&P has bought the Tyneside and Birkenhead yards for an undisclosed sum and has acquired the option of the lease for the Teeside shipyard. Despite two other concrete bids from former management teams, PwC sold the yards to A&P, but not as a going concern.

Ian Stokoe of PwC, said: ‘We have endeavoured since our appointment, through continuing existing contracts and undertaking new work to produce an environment which would have made a going concern sale possible.

‘Unfortunately, despite all these efforts, a going concern sale has not been achieved. Whilst the next steps are now the responsibility of A&P, we sincerely hope that this sale will provide a successful future for the yards.’>Workers and unions have voiced concerns over the A&P bid fearing it would mean the termination of the northern yards, but A&P’s chief executive David Ring implied there was a rosy future for the yards.

He said: ‘We believe our bid is the best option for maintaining a long-term ship repair capability in the UK and where possible, for attracting new work.

‘We have confidence in the skills of our workforce and believe this deal gives us the best opportunity of a sustainable future.’

Cammell’s yards, under receivership since April after the loss of a £50m Italian cruise ship contract, have been the growing focal point of clashes between workers and their unions and the receivers. The A&P bid, reportedly worth £10m, was put on hold earlier this week following claims by unions representing Cammell’s workers that the sale would create a monopoly in the industry.

A&P funded by Royal Bank Private Equity has bought the plant and equipment on each of the three yards. All existing contracts remain the responsibility of PwC.

Links

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PwC under fire as it weighs up bids for Cammell Laird

Third bid tabled for troubled shipyard

Second bid tabled for ailing shipyard

PwC under fire amid further job cuts

Bid for Cammell could save jobs

Receivers cut more jobs at Cammell

Still hope for Cammell Laird buyer

Blue cross day for troubled Cammell Laird shipyards

Call for better staff deal in insolvencies

PwC finds buyer for troubled shipyard

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