Agreement reached on transfer of ownership of Australian naval shipbuilder

Australia's Civmec and NVL of Bremen, Germany have entered into a non-binding heads of agreement detailing the framework for the transfer of ownership of Luerssen Australia to Civmec.

Luerssen Australia’s sole business is the building of six Arafura-class offshore patrol vessels (OPVs) for the Royal Australian Navy (RAN) under the existing SEA1180 contract with the Australian Department of Defence (DOD).

Upon completion of the potential transaction, NVL will transfer all its shareholding in Luerssen Australia to Civmec, including all assets, employees, and licences. Civmec said this ensures the uninterrupted design and build of the Arafura-class OPVs at the Osborne South shipyard in South Australia and the Civmec-owned facility in Henderson, Western Australia.

The proposed change of ownership and control of Luerssen Australia is subject to the Australian government granting its consent. In order to obtain such consent as soon as is possible, Luerssen Australia and Civmec will immediately begin engaging with the government in the required administrative approval process, with the parties working towards a target date of December 31, 2024.

The non-binding heads of agreement is subject to satisfactory due diligence and meeting conditions precedent. In parallel with the government's consent process, an effective date in the coming months will allow the parties to conduct necessary due diligence and detailed planning.

The immediate priority is to agree on a framework for the interim period in which Luerssen Australia and Civmec will closely cooperate in managing the SEA1180 project, ensuring that the DOD, the RAN, and industry all benefit from the efficiencies and advantages of the agreement.