UK government to block submarine yard sale

Worried about national security, the UK government appears to be adamant that BAE Systems’ sale of its shipbuilding arm should not include its submarine yard at Barrow in Furness. The Ministry of Defence (MoD) is reportedly concerned over a change of control of Britain’s only nuclear submarine builder which is currently constructing the first two units of the Astute class of nuclear submarines for the Royal Navy.

Earlier this week BAE, Europe’s biggest defence company, said it was viewing the possible sale of its naval shipbuilding operations and it seems that the company remains committed to selling the whole division. If this is the case, then press speculation of a rift between the company and the MoD may prove to be correct.